Aer Lingus is pushing ahead with plans for compulsory redundancies to cut costs by almost €100m.
In a brief statement this evening, the company said that despite exhaustive negotiations with all union groups, it is no closer to an acceptable deal.
Aer Lingus said that as of today, it is too far from bridging the gap with the demands of pilots and cabin crew.
The company has now activated a taskforce to begin the process of planning compulsory redundancies and reductions in its fleet.
It is now thought more than the original 696 jobs are at risk.
Aer Lingus Commercial Director Enda Corneille said the chance of a positive outcome is all but gone.
"At this stage the gap between the sides is too far to bridge," Mr Corneille said.
"We are very pessimistic now that we can get agreement."
IMPACT trade union however insisted talks are still continuing on trying to solve the problem and Aer Lingus' move is only increasing pressure on its members.
"If that gap couldn't be bridged we wouldn't be down here involved in discussions," said spokesman Niall Shanahan.