Ireland's Transport Minister has declined Ryanair's offer to act as the budget airline's proxy at rival carrier Aer Lingus' annual shareholder meeting this week, The Irish Times reported on Wednesday.

Ryanair, Aer Lingus' biggest shareholder with a near 30 percent stake, has tabled motions for Friday's AGM proposing to cut the salary of the airline's chairman and the fees of its non-executive directors.

Last week, Ryanair handed its votes on the issue to the Irish government.

However, the Irish Times, citing a letter sent to Ryanair chief executive Michael O'Leary, said Transport Minister Noel Dempsey had declined his "kind offer".

"While I would certainly be interested in having control of Ryanair's shareholding in Aer Lingus - to use in the long-term interest of the shareholders, the company and consumers - I am really not interested in short-term, limited control of the shares solely to vote for resolutions proposed by Ryanair at the AGM," Dempsey was quoted as writing.

"As you appear to have strong views on the resolutions, I suggest it is probably better to use them yourself or appoint someone who shares your agenda on Aer Lingus."

In January, Dempsey torpedoed Ryanair's 1.40 euros a share bid for Aer Lingus, its second, after he said it "greatly undervalued" the airline.

The Irish government is Aer Lingus' second-largest shareholder, with a 25 percent stake.

Aer Lingus' shares closed up 9 percent at 71 cents on Tuesday. Ryanair, which reported its first annual loss in two decades after writing down much of its Aer Lingus investment, finished 2.6 percent weaker at 3.536 euros.