The strength of the commitment to a third terminal at Dublin airport, and the nature of the competition among bidders to run the second one, are the remaining aviation policy issues expected to be resolved finally when the Cabinet meets on Wednesday.
Sources in both Coalition parties said yesterday they expected an agreement on the long-running saga to be reached this week.
The Progressive Democrats' are determined to see an independently-run terminal at Dublin airport competing with the existing terminal run by the Dublin Airport Authority.
Fianna Fáil's resistance to this idea was articulated last Thursday by Minister for Transport Martin Cullen, who said the idea had been an "abject failure" when tried elsewhere.
Fianna Fáil and PD figures are believed to have agreed the outline of a compromise proposal late last week. This would see the Dublin Airport Authority being allowed compete against other bidders to run the second terminal, with a commitment to having a third independently operated terminal at some point in the future.
The remaining issues to be resolved are the nature of the tendering process for the second terminal, and the firmness of the commitment to a third one. While Mr Cullen's remarks indicated a clear preference for the tendering competition to be won by the DAA, the PDs are anxious to ensure a level playing pitch for all bidders.
In addition, the PDs are seeking a firm commitment to building a third terminal, either within a certain time-frame or when passenger numbers reach a certain level. They have insisted they do not want a vague aspirational commitment to the idea.
The long-running disagreement over the issue has led to some sharp exchanges between the Coalition parties. In the Dáil last week Mr Cullen vehemently criticised the PD view that two terminals at Dublin should compete with each other, agreeing with Labour transport spokeswoman Róisín Shortall that the idea had failed elsewhere. He also said the outside interests which had responded to the Government's invitation to make "expressions of interest" in operating a second terminal had given no examples of where the concept had worked elsewhere.
PD sources responded by saying Mr Cullen's remarks showed there was a "mindset" within the Department of Transport which was "the same mindset that resisted the deregulation of airlines in the 1980s".
The other core aspect of the aviation package to be brought to Cabinet involves the sale of a majority stake in Aer Lingus, with the State retaining a minority stake. The workers would also retain their 14.9 per cent stake in the airline.