Approximately 2 million travellers pass through Shannon each year.
However, Mary Considine, the head of Shannon Airport Group, stated that an expansion to the present terminal could handle up to 10 million people at a meeting with James Lawless, the Minister of State at the Department of Transport.
The current passenger capacity at Dublin Airport is 32 million annually, which was set as part of the 2007 planning permit for the second terminal.
However, up to one million travellers are expected to surpass that quota this year.
As a result, the aviation authority has placed restrictions on the quantity of airline seats that may be sold in and out of Dublin between the winter and summer of next year.
Regional airports manager James Lawless has frequently proposed using Cork, Shannon, and Knock to handle the excess traffic from Dublin while the capital's airport requests authorisation to remove the quota.
"Evidence shows that there is demand from Irish people to travel from our regional airports, and for tourists to arrive directly into the regions, when these services are provided," he stated after the discussion.
"I was happy to note that our regional airports had a 9% increase in passengers last year and an 8% increase so far this year. Shannon Airport is up 7%, and Cork Airport alone is up 11%.
Airlines, however, have rejected the idea, claiming that flights into and out of Dublin account for the majority of customer demand.
The government's announcement of more over €4.2 million in financing to boost Shannon and Cork airports this year coincided with the cap negotiations.
The funds are being distributed as part of the recently established Regional State Airports Sustainability Program.
It seeks to assist Regional State airports in meeting their carbon reduction goals and strengthening their climate change resilience.