Aer Lingus has warned that if the €748m hole in its pension scheme is not addressed members who have not yet retired could receive as little as 4pc of their expected pensions.
The group's union SIPTU called off a threatened strike at Dublin Airport over a week ago to allow for talks on the deficit. The joint pension scheme is known as the Irish Aviation Superannuation Scheme (IASS).
Unions claimed that Aer Lingus would have to contribute up to €200m and the DAA would have to pay out €130m to resolve the deficit.
In an announcement to the stock exchange yesterday evening, Aer Lingus proposed freezing the current IASS scheme and reducing risk by investing in bonds whose cash flows "broadly match" the IASS obligations.