Passengers using Aer Arann's domestic flights could soon be able to use the network of transatlantic services operated by Aer Lingus.
The two airlines are in detailed negotiations about a ticketing link-up that would allow Aer Arann passengers to book flights via Dublin to the United States with Aer Lingus.
Similarly, passengers flying with Aer Lingus from the US would be able to use Aer Arann's services from Dublin to Cork, Donegal, Sligo, Knock and Galway.
The airlines are working on a number of technology issues to allow passengers to book flights online using one ticket.
They also hope to offer passengers a facility to check baggage straight through to their final destination.
Gary Cullen, Aer Arann's chief executive, said the service could go live by the end of August. "We're hopeful that a deal can be concluded in the summer," Mr Cullen said.
Aer Lingus is targeting passengers travelling to the US from Cork, a large number of whom currently fly via London with BA. "Our main focus will be Cork," said Enda Corneille, Aer Lingus's commercial director. "That's where we could capture traffic that's been slipping away to Heathrow."
Aer Lingus operates flights to New York, Boston, Chicago and Los Angeles. It will begin services to Orlando, San Francisco and Washington later this year.
Mr Cullen said a revenue-sharing arrangement would be put in place. "We'll just look to recoup the cost of our flights," he said. Aer Arann's average fare is about €50 each way.
Aer Arann, which carried 1.1 million passengers last year, took delivery yesterday of a new ATR 72-500 aircraft from Airbus.
This is part of a $180 million (€133 million) investment in 10 planes.
