The Irish Aviation Authority and Britain’s National Air Traffic Services (Nats) are considering a partnership deal.
If they can agree, they could make joint bids for lucrative air traffic control contracts.
Nats says the two companies have "agreed to investigate potential areas of co-operation, including closer co-ordination on European air traffic management opportunities, air space management, systems investment, business development and support services".
The joint study is expected to lead to an agreed implementation plan by the end of 2002.
Nats chief executive Richard Everitt says: "The European Union's Single European Sky initiative will lead to a significant restructuring of air traffic management over the next decade, similar to that experienced elsewhere in the aviation industry and many others.
"Because of their geographical position, the UK and Ireland are well-placed to play a key role in this process.
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