Political reaction: Fine Gael has claimed Fianna Fáil "won the battle" with coalition partner the Progressive Democrats over yesterday's decision on a second terminal.
In what all Opposition parties were describing as a fudge, the Government was accused of political expediency at the expense of travellers and workers.
Fine Gael transport spokeswoman Olivia Mitchell said allowing the Dublin Airport Authority (DAA) to decide where the new terminal would be built, most likely on its own lands, was the "worst possible outcome of this tortuous and inexplicably long process".
"Fianna Fáil has won the battle to keep the second terminal at Dublin airport in State hands, and the PDs got the fig-leaf promise of an independent third terminal.
"After all the reports, all the debate, all the advisers, and all the delay, the Government has decided to let a monopoly control the airport terminals, on a site that is too small, in a location that is inherently inefficient.
"The consumer and wider national interest has been ditched in favour of a party political fudge that serves as a textbook example of how not to govern or make decisions."
Labour's transport spokeswoman Róisín Shortall said the most damaging part of the aviation package was the sale of Aer Lingus.
"The Labour Party believes that it is essential that Aer Lingus should remain under public control. The high number of direct flights to and from various destinations which Aer Lingus operates has been critical to our tourist industry as well as to foreign investment in key Irish industries.
"Similarly, the decisions on the development of Dublin airport have been based on meeting the requirement that neither party in Government would be able to claim a political victory over the other."
She added: "We have an existing terminal that cannot deal with the expanding capacity; the Government parties could not agree about a second terminal; so the compromise is to have three terminals. This makes no sense."
Green Party leader Trevor Sargent described the aviation package as "a classic Government fudge". He said the proposals on the terminal would "do little to ease the queues of people seeking to board flights at Dublin airport".
The Government should also have adopted an approach of investment in Aer Lingus as opposed to a sell-off.
Sinn Féin transport spokesman Sean Crowe welcomed the decision to build a second terminal, which would be owned by the DAA. However, he accused the Government of an "act of sabotage" over its decision to sell off part of Aer Lingus.
"I can't help thinking that this particular announcement today is the price the workers at Aer Lingus and their families, as well as the Irish taxpayer, is going to be forced to pay to save the embarrassed blushes of the PDs, who didn't get their way on the second terminal."