Aircoach, the private coach operator, is to expand its services in Dublin with a €5 million investment on a lucrative new route in south Dublin, writes Emmet Oliver

The company has also announced its intention to compete for any Dublin bus routes put out to tender by the Minister for Transport, Mr Brennan, next year.

The new route will run to the airport from the south Dublin suburbs of Stillorgan, Leopardstown and Sandyford. Managing director Mr John O'Sullivan said in order to operate the route he would have to add 12 new coaches at a cost of about €5 million.

The company will recruit between 25 and 30 drivers for the route, which will serve key locations such as the Radisson Hotel, Stillorgan Park Hotel, Montrose and RTÉ.

The company hopes to have the new route in operation by Easter. Another route running between Greystones and the airport is also being looked at.

Mr O'Sullivan said the new airport service would be similar to its existing route which runs from Ballsbridge to the airport.

He said the company was responding to high levels of demand from the Sandyford, Leopardstown/Stillorgan catchment area.

He said a significant number of business users were expected to use the service.

Mr O'Sullivan also signalled his intention to compete for as many Dublin bus routes as possible in 2004.

The Minister for Transport, Mr Brennan, has promised to put up to 25 per cent of Dublin bus routes out to tender next year, although he is facing opposition to these plans from Dublin Bus workers.

Mr O'Sullivan said if Mr Brennan structured the new arrangements correctly private operators would be prepared to operate on unprofitable or social routes as well. However, he said many routes in the Dublin area were highly profitable, particularly those on the quality bus corridors.

Aircoach is the biggest private coach operator in Dublin at present and brings 2,000 passengers to the airport each day. It would be in the best position to take advantage of any de-regulation of the sector. Other companies such as JJ Kavanagh might also be interested in moving into the sector.

Asked how many routes Aircoach would like to compete for, Mr O'Sullivan said: "We will gear up to whatever level is required." He said if Mr Brennan de-regulated as much as 25 per cent it would mean Aircoach having to put 250 to 300 new buses on the road.

Aircoach is owned by a company called Last Passive Ltd, and its two directors are Mr O'Sullivan and Ms Mary Leane. According to the last accounts registered with the Companies Office, it had losses after tax of €423,340 to July 31st, 2001.

However, Mr O'Sullivan said the losses were being pared back and Aircoach might consider partnering with another company in the event of a major de-regulation of the market.