Aer Lingus is in commercial discussions with Irish regional airline Aer Arann regarding co-operation on their route networks.
The talks focus on franchise arrangements on routes between Ireland and the UK, Aer Lingus says in a brief statement.
Aer Arann operates flights from Ireland to 11 UK mainland destinations, plus Belfast and Londonderry in Northern Ireland and Jersey in the Channel Islands. Aer Lingus operates to seven mainland UK destinations plus Belfast and Jersey. Most of the destinations are duplicated with those of Aer Arann.
Some limited co-operation already exists between the two carriers, with an interline agreement allowing Aer Arann passengers on its Cork to Dublin route able to book onward connections with Aer Lingus to the USA.
Aer Arann declines to comment on developments. "There's absolutely nothing we can say at this point," says a spokesman.