The talks have been going on for the past several months since the national carrier started looking for another hub in Europe after Frankfurt.
Air India, which operates three flights out of India and two from the US to its Frankfurt hub, has been considering shifting out of the German city and was looking for another European airport as a hub. However, no firm decision has yet been taken.
With a high-level Air India team visiting Dublin Airport a few months ago, DAA Chief Executive Declan Collier is now here to take the discussions with Air India further.
DAA was also looking at Kingfisher as a potential customer which can make the Irish airport its hub. Jet Airways already has Brussels as its operational hub in Europe.
"Compared to Frankfurt, we have estimated that Air India can save up to Euro 14 million per year through lower aeronautical charges, Customs and Border Protection (CBP) charges (of the US) and other facilities," DAA Communications Director Vicent Wall told PTI here.
"We can also do a turnaround for Air India planes in a short time of two hours. That is what they need. Our costs are about 25 per cent cheaper than any European airport," he said.
A new and modern terminal building of DAA, that would start functioning from November, would have pre-clearance for customs and immigration for passengers travelling to the US at Dublin itself.
"This pre-clearance facility, which is also available at Shannon airport in Ireland, would allow Indian passengers to avoid long queues at US entry points and take a taxi right after getting out of the aircraft in America," Wall said.
"No other European airport will have this facility that will make life easier for passengers transiting to the US," he said, adding Ireland and the US have an 'open sky' agreement.
Air India aircraft would have dedicated parking bays and its passengers separate check-in counters, baggage clearance points and duty-free shopping areas at Dublin. Air India currently flies about half a million passengers annually to the US.