Talks between Qantas management and labour unions have failed again, meaning both sides must accept a settlement outlined by government regulators.

According to the Australian and International Pilots Association (AIPA), management for the Australian flag carrier have rejected its request for a 21-day extension. AIPA Spokesman Anil Lambert said that his organisation though that an agreement could still be reached.

But A spokesman for the airline said the carrier denies terminating talks and that the pilots’ union had concluded that it could not reach an agreement. He went on to say that the matter would now be resolved via binding arbitration, which analysts say may help the airline in its efforts to cut costs.

Meanwhile, the airline is still engaged in negotiations with unions representing ground workers and engineers and have until midnight tonight to reach an agreement amid a bitter dispute between the two sides over the carrier’s plans to move jobs to Asia.

Transport Workers’ Union national secretary Tony Sheldon told reporters that he did not have much hope for negotiations and said the union would also call for a 21-day extension to talks due to fears that arbitration will cater largely to the airline.

The news follows months of strikes culminating in an unprecedented worldwide grounding of the Qantas fleet, prompting action from the government via an independent tribunal.