Embattled Aer Lingus chief executive Dermot Mannion has survived a crucial Aer Lingus board meeting following criticism over guidance the airline gave to the market in December.

Institutional shareholders are also deeply concerned over the company's dwindling cash resources and some of them are demanding that Mannion pay them a special dividend.

One source described the meeting as a "clear the air session" with "some hard talking". The airline declined to comment.

Earlier in the week sources were speculating that Mannion would be under intense pressure and a company statement was even expected concerning his position at one point.