Minister for Transport Martin Cullen is expected to update Ministers on the issues of a new terminal at Dublin Airport and fresh funding for Aer Lingus at next Tuesday's Cabinet meeting.
Sources indicate the Dublin Airport Authority may be given a central role in the building of a new terminal, but possibly alongside a private developer. The most likely site for a new terminal is the north apron area near the existing terminal.
However, such an approach will prove unpopular with low-cost airlines such as Ryanair. Its chief executive, Michael O'Leary, recently said giving the airport authority a major role would not create true competition.
Businessmen Ulick and Desmond McEvaddy, meanwhile, are continuing their campaign to have the terminal built on land they own to the west of the airport.
However, this option is not the preferred choice of Ryanair, a key airline along with Aer Lingus.
Mr Cullen has been meeting union officials in recent weeks to sound out their views. While Ministers will be updated on Government thinking, a full Cabinet decision may not be made on Tuesday.
In relation to Aer Lingus, the Government is unlikely to advance plans for new funding until a new chief executive is in place.
This may not now happen until early April.
Sources indicate the two favourites are Alan Joyce, the managing director of JetStar, the low-cost operation of Qantas and Mr David McRedmond, commercial director of Eircom.
However, other candidates may also emerge. The airline is currently being run by John Sharman, who is acting as executive chairman.
The airline has set up a sub-committee of the main board to select the chief executive. Once that person is in place, the airline will move to recruit a chief operations officer and a chief financial officer.
