The Government has finally unveiled its aviation policy which includes the construction of a second terminal at Dublin airport and plans for a privately operated third terminal. Minister for Transport Martin Cullen also announced the sale of a majority stake in Aer Lingus.
Mr Cullen also announced that a new pier at the airport will be built at the airport within two years, followed by Terminal Two in 2009. The terminal will be owned by the Dublin Airport Authority but the selection of an operator will be decided by an open competition.
Planning work will begin immediately on a third terminal which will be independently owned and operated, it is understood.
The sale of a majority stake in Aer Lingus is expected to raise around€300 million, well short of the €1 billion the airline says it requires for new aircraft on its planned expanded network.
The long-running disagreement over the issue has led to some sharp exchanges between the Coalition parties. The Progressive Democrats favoured an independently-run terminal at Dublin airport competing with the existing terminal run by the Dublin Airport Authority. This was also the preferred option of Ryanair.
Fianna Fáil's resistance to this idea was articulated last Thursday by Minister for Transport Martin Cullen, who said the idea had been an "abject failure" when tried elsewhere.
Failte Ireland chairwoman Gillian Bowler said the new facilities would be a positive development for the country, allowing increased air capacity and providing growth potential from all markets.
She said the new terminals would make Dublin a more attractive location for big-spending business travellers. "The high-end business tourism market is extremely lucrative and is one of the key growth areas identified by Failte Ireland," she said.