Union leaders have reportedly rejected improved redundancy packages offered by Bahrain's Gulf Air.
According to the Gulf Daily News, the Gulf Air Trade Union said it had turned down an offer that would see staff laid off receive 30 days' salary for every year they had worked, in addition to a bonus payout and another three months' salary.
Spokesman Mohammad Mahdi told the paper that the new deal, brokered by Labour Ministry Under-Secretary Sabah Al Dossery, fell short of the two months' pay for each year's service and BD5,000 bonus that the union was looking for.
Mahdi was quoted as saying: "We didn't only refuse that deal, but the whole restructuring process - and for good reason.
"A lot has changed since the restructuring plan was formed. For instance, the closure of Bahrain Air - our only competitor - and the recent reports that the Bahrain economy is stabilising.
"We have called for a major update of the plan bearing in mind all the new variables."
The loss-making Bahraini flag-carrier has suffered due to strong competition from nearby Emirates Airline, Qatar Airways and Etihad Airways, and cut eight non-performing routes last year
Gulf Air is now focusing on Middle East and North African routes, as well as providing a limited number of routes to selected European and Asian markets.
Last month, it was reported that more than 1,200 staff could lose their jobs as part of a major restructuring process at Bahrain's Gulf Air.
Union leaders claimed that 1,266 staff from Gulf Air will be made redundant as part of the plan.
Under former CEO Samer Majali, who left Gulf Air at the end of the year, the airline had already revised its orders with Boeing and Airbus in a bid to save roughly US$2.5bn.