Aer Lingus has set itself the one of the most aggressive growth targets in European aviation and is a model for other airlines to study, a new report has claimed.

The report by Davy Research says Aer Lingus is well positioned to grow significantly in the future because of its new fleet and emerging opportunities in Europe and especially the US.

According to Davy: "Aer Lingus has targeted a medium term operating margin of 15 per cent. This is the most aggressive target of any network airline in Europe".

While the report does not speculate on whether the airline can meet this specific target, it says Aer Lingus is on course to improve on its current operating margin of 6.7 per cent.

Apart from no frills operator Ryanair , no other major European airline is forecasting margins on the scale of Aer Lingus, the report notes.

It says an initial examination suggests the airline's options for growth are limited.

"However there are a number of potential expansionary avenues open to the company".

Among them are continental European routes out of Dublin and Cork; flights into new US cities and possibly long haul flights to Singapore, Hong Kong, Dubai and South Africa in the longer term.

The report also raises the issue of the airline setting up a European base.

"We believe this to be unlikely in the medium term. Aer Lingus has a well known brand in the UK and US, but not in continental Europe," it says.