A number of property developers and hotel groups, including Jurys Doyle, have expressed an interest in developing the Aer Lingus headquarters, which could be worth up to €50 million.

The airline said yesterday it had received a number of approaches for the site, which is on a long-term lease from the Dublin Airport Authority (DAA). A spokeswoman said various options were being considered, but no decision had been made.

Pat McCann, the chief executive of Jurys Doyle, has said his company would like to open more Jurys Inns properties, particularly in Dublin airport. He said the company "would love to be involved" in the development of a second terminal or redevelopment of Aer Lingus headquarters.

It is not known what companies have approached Aer Lingus directly, but it is understood there have been several. The site is one of the largest in the airport and is believed to be spread over 10 acres. The biggest obstacle to any redevelopment is likely to be planning permission.

It is understood the site is on a 98-year lease to Aer Lingus from the DAA. Consequently the DAA would have to approve any arrangement between the airline and private developers. The DAA is anxious to see development of the site, but it may need to carry out some works in the area during the construction of a new terminal. Better road access may be needed, suggested an airport source.

The site, which includes a large car park, dates back to the 1960s and the last management team, led by Willie Walsh, were developing plans to extract value from the site, before they decided to step down back in November.

The value of sites at the airport has increased over recent years as passenger numbers have risen. It is understood the Clarion Hotel group recently paid aproximately €34 million to acquire the Holiday Inn hotel.

However the site that the Aer Lingus office sits on is larger than the Holiday Inn site. In the last few years there have also been suggestions a metro might be built to the airport near the Aer Lingus office. This would add significant value to the site. Any development of the site might also include a substantial retail element.

The DAA may be concerned about the impact of any new hotel on its Great Southern Hotel property at the airport.

This is believed to be one of the more successful of the nine Great Southern hotels, although DAA chairman Gary McGann has long complained about the level of losses at the hotel chain itself.

Aer Lingus is currently positioning itself for sale. The airline is engaged in intensive talks with unions on work practice change and cost cutting. However, the airline's operating profits are expected to take a hit in 2004.