Transport Minister Martin Cullen this morning updated the Cabinet on recent developments in the aviation sector.
He told Ministers he would bring forward proposals on the future of Aer Lingus and a possible new terminal at Dublin Airport soon after Easter.
While no decisions were made at today's meeting, a spokesperson for Mr Cullen described the discussion as 'positive', and said the Minister was determined to move away from the rescue package culture of the past and towards a positive future for the national airline.
The Tanaiste has told the Dail that a decision on Aer Lingus was neither sought or made at this morning's Cabinet meeting.
Mary Harney also said the Minister for Transport would be coming back to the Government after Easter with a 'memorandum' on the issue of another terminal at Dublin airport. In response to a question from Fine Gael leader Enda Kenny, Ms Harney said that capacity and competition were the issues that mattered, and ownership was not so relevant.
Deputy Kenny had asked her about newspaper reports that the PDs would not stand for the Dublin Airport Authority's building the second terminal.