Aer Lingus chief executive Stephen Kavanagh has said that the vast majority of savings identified in the confidential NYRAS report relate to contract and procurement efficiencies.

His comments come as TDs prepare for a second day of debate on the proposed deal to sell the Government's stake in Aer Lingus to IAG - before a Dáil vote later.

Yesterday, Opposition TDs revealed details of a report commissioned by Aer Lingus which identified €60m in potential savings.

Mr Kavanagh said that the report is nothing to do with job cuts and there will still be 635 net new jobs under the proposed deal with IAG.

"We will be looking for opportunities in efficiency within the existing cost structures," he said.

"So we will be looking for opportunities for smarter working with the staff we have now and the staff we are growing.

"But this is not related to job cuts.

"The vast majority of the €60m, in excess of 90% of the €60m, is related to simply more efficient use of contracts and the more efficient use of procurement."