The former state carrier's transatlantic business is likely to come under pressure on two fronts. Ryanair chief executive Michael O'Leary has indicated that he plans to launch a low-cost service flying to secondary airports in the US with one-way fares of around 10.

Meanwhile, British Airways, led by former Aer Lingus chief executive Willie Walsh, is planning to offer all-premium services to the US after it experienced weak trading in its transatlantic economy class last year.

But Aer Lingus commercial director Enda Corneille said the airline would continue to operate its twin-track approach, running low-cost services in Europe and a traditional long-haul model elsewhere.

"Our flights to the US are already wellpriced: it costs around 120 to fly from Dublin to New York at the moment, " he said. "As for whether transatlantic fares will get to 10 or 20, we don't feel that they will get to that level in the short term."

Aer Lingus' current focus is on improving comfort for its transatlantic passengers. Its new Airbus A330, which arrived two weeks ago, features a new videoon-demand entertainment system in all classes and lie-flat reclining seats in premium class.

Corneille said the airline's management was not distracted by Ryanair's attempted bid for the airline, which looks likely to be blocked by the European Commission in July.

"We've worked hard to ensure that it doesn't distract us. We've been purchasing new planes and launching new routes while this has been going on.

We've just got on with the day job, " he said.

The airline is planning to conclude discussions with Boeing and Airbus over a new order for 14 long-haul aircraft next month.

Corneille also said that, unlike many other carriers, it would continue to offer transatlantic services from Shannon and saw potential commercial opportunities in the withdrawal of carriers such American Airlines from the airport.

"We still plan to fly from Dublin and Shannon as long as it makes commercial sense for us, " he said.

HANGING TOUGH

AER LINGUS will continue to take a strong line against militant workers, according to Enda Corneille, following last week's battle over the new Area 14 check-in facility at Dublin airport.

The airline threatened to suspend baggage handlers at the airport after they demanded 1,000 each and promotions before they would work in Area 14. The dispute, which delayed its opening by a week, was resolved on Monday with no money changing hands.

Corneille didn't rule out the use of such tactics in future, stating that "we can't be held at ransom every time we make a change".