The Minister for Public Enterprise has rejected a fresh proposal from Ryanair to build and operate a second terminal at Dublin airport.

Ms O'Rourke has written to Mr Michael O'Leary, the Ryanair chief executive, saying the EU Commission - or the soon to be appointed independent aviation regulator - would not allow the Government to give the airline such special treatment.

Mr O'Leary said the Minister had not addressed the main issue of "whether or not she wants to support our proposal to open 10 new routes from Ireland to Europe and the UK, creating 500 new jobs and carrying two million passengers a year".