Airport plans threaten future investment, says Aer Rianta

Aer Rianta warned today that proposals to cut airport charges and allow private development at Dublin Airport would have serious…

Aer Rianta warned today that proposals to cut airport charges and allow private development at Dublin Airport would have serious cost implications for the company and could threaten future investment.

The recommendations were made earlier in the week by the inter-departmental working group set up in the aftermath of the September 11th attacks.

In its interim report the group recommended lower airport charges and limited private development at Dublin Airport as way to boost tourist numbers.

But Aer Rianta says such measures would have serious implications for the company’s cost base and could threaten future investment such as the proposed £100 million terminal for Cork airport.

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In a statement today the company said: "The requests outlined in the interim report raise many financial, competition and security issues for the Board."

The company requested an urgent meeting with the group to "discuss the various issues raised in the Report". It plans to invite the members of the group to visit Dublin Airport and view its facilities.

The statement also said the company "will be pointing out to the group that Shannon Airport has excess capacity and has been most adversely affected by the events of September 11th".

"The Board will also wish to discuss facilities at Cork Airport", it said.

The company said it was anxious to assist the tourist industry as far as possible within the mandate set down for the Company by legislation.

The recommendations include the development of the Pier D terminal at Dublin Airport by 2003 to facilitate low cost carriers.

Minister for Public Enterprise Mrs Mary O'Rourke has given Aer Rianta until next Monday to respond to the recommendations.

Eoin Burke-Kennedy

Eoin Burke-Kennedy

Eoin Burke-Kennedy is Economics Correspondent of The Irish Times