The cost of a second terminal for Dublin airport and associated infrastructure has almost doubled with growing uncertainty about how the project will be funded. The Dublin Airport Authority (DAA) said yesterday it intended to apply for planning permission for a 75,000sq m facility, compared to its previous estimate of 50,000sq m.
The previous cost was between €170 and €200 million, but this has now risen to €395 million.
Despite the escalating cost, there is no clarity about the location of a metro station at the airport or who will pay for it.
Chairman of the DAA Gary McGann said many variables had changed since the authority announced its original plan. He said Aer Lingus was planning to expand greatly via long-haul services and Ryanair had announced an aggressive growth plan.
The airport authority said an original estimate for its overall capital spending plans at Dublin airport of €1.2 billion would now be exceeded.
Chief executive Declan Collier declined to say by how much it would be exceeded, but said the company was engaged in talks with various stakeholders, including the aviation regulator. The €1.2 billion figure includes a number of items, such as the new terminal, several new piers and a new runway.
The funding of the terminal and other infrastructure is still unclear at this stage. The DAA wants a €7.50 per passenger charge to help pay for the building but, so far, the aviation regulator Cathal Guiomard has refused to approve this sum.
Mr Guiomard said last night that he was still awaiting an overall plan for all the developments at the airport. He said he had seen various "updates" and the plans were evolving, but he could not revisit the subject of passenger charges until he had an overall capital investment plan and supporting justifications.
He said the sooner he received this data, the quicker he could assess the financial underpinnings of the proposals.
Mr McGann said some observers would describe the costs as high, but, when benchmarked against the €83 billion being spent by other major European operators, it was clear Dublin's spend "is not in any way out of line".
The new terminal will be close to the roundabout on the approach road from the M1 to the existing terminal. It will house 58 check-in desks and 9,000sq m of retailing space. There is provision to add 15,000sq m to the 75,000sq m building if the airlines demand this in future years, explained Mr Collier.
There was little clarity yesterday on whether a metro station would go directly into the new terminal. While Minister for Transport Martin Cullen said he wanted to see rail and aviation transport integrated, it is understood there is no agreement yet on who will fund any metro stations at the airport. One station will be required at each terminal.
The new terminal will require planning permission from Fingal County Council. Objections are likely, with local residents groups likely to oppose further growth. Ryanair may object to the proposals. Mr Collier explained yesterday that the timetable made provision for objections, although it hoped there would not be any.
Aer Lingus is expected to be the main user of the new terminal, along with other trans-atlantic airlines. This will leave Ryanair in the existing terminal. The passenger charges for the new terminal, however, will have to paid by all passengers - regardless of whether they use the facility or not.
Aer Lingus and Ryanair are the key users of Dublin airport, generating almost 70 per cent of its annual traffic.