A consultants' report has said that separation from the Dublin Airport Authority offers better growth prospects for Shannon Airport's future.
The report by international consultants Booz, commissioned by Transport Minister Leo Varadkar, says Shannon faces a significant threat to its future viability under the current ownership arrangement.
Shannon has lost two million passengers since 2007 and is understood to have a long-standing debt of €100m.
Minister Varadkar warned business and community leaders in Shannon last month that the the status quo was not working for Shannon, and that change was needed.
The consultants' report says a move to a local concession model to include the local county councils in Clare and Limerick - and possibly Shannon Development and other commercial interests - would offer the greatest opportunities for developing business.
It also recommends that the airport examine new sources of revenue, including exploiting its 2,000 acre landbank around the airport and using its US pre-clearance facility for cargo.
The report also looked at Cork Airport, but said that it was performing well under DAA ownership and that it enjoyed a healthier financial position.
Minister Varadkar has said that Shannon would be the first of the state airports to have certainty about its future, and he would make a recommendation to Cabinet on the best option for the future viability of Shannon by Easter.
