The Minister for Transport, Mr Brennan, is to invite expressions of interest from parties interested in developing a new terminal at Dublin Airport. The terminal would be independently owned and run.
Ryanair welcomed the announcement, saying a new terminal would enable it to introduce new routes resulting in a 90 per cent reduction in fares to cities all over Europe. A number of tourism groups said a new terminal would help kick-start the troubled tourism sector.
Mr Brennan said advertisements would be placed in newspapers next week, domestically and internationally, inviting expressions of interest on the provision of an "independent terminal or terminals" at the airport. He said responses to the invitation would assist in assessing the interest in and potential benefits of a new terminal and would be invaluable in determining what further action may be needed to allow the concept progress.
A decade ago, Dublin Airport was catering for 5.5 million passengers annually but last year that reached 14 million and is expected to reach 30 million by 2020.
"This is why it is such an exciting and innovative time for the airport and why decisions relating to its future facilities need to be accelerated to ensure that it is in a position to meet the challenge presented by the ongoing rapid growth and expansion," the Minister said.
Ryanair said if the second terminal was built, it would set up a wide network of new low-fare routes between the Republic and continental Europe, giving Irish consumers daily scheduled flights at prices that would start from €49, to destinations in Spain, France,Italy, Germany and Scandinavia "where presently there are either no services or the fares are €500 and €600".
It said a second terminal and the new routes could be in place as early as summer 2004, adding the introduction of competition at Dublin Airport "will have a momentous effect on Irish tourism".
"Ryanair hopes that Minister Brennan won't stop at a second terminal but urges him to consider third and fourth terminals as well," said chief executive Mr Michael O'Leary. "Irish consumers and Irish tourism can only benefit from more competition. . . We have no doubt the Aer Rianta monopoly and its supporters will continue to try to block this initiative."
Aer Rianta chief executive Mr John Burke said it was difficult to make any comment on the new proposed terminal while it was still at a "concept phase". However, he cautioned that independent terminals were not used on a widespread basis internationally and that any new terminal at Dublin Airport would have to be backed by a variety of infrastructure projects at the airport such as car parking and taxi ranks. Aer Rianta would not be taking part in the submissions process, he said.
"This is supposed to be happening independently of us, I don't see much point in us making a submission."
Yesterday, Aer Rianta announced it is to extend its route support scheme, which was due to expire in September. No airport charges will be paid for three years by any airline starting a new route at Dublin and for four years for routes at Cork and Shannon. The company said the extension was not related to the Minister's announcement.
The Irish Hotels Federation and Tourism Ireland both welcomed the Minister's announcement.
