The Government has recognised the benefits of low-cost airlines by directing Aer Rianta to proceed with the construction of new facilities at Dublin Airport. Rather than approving a traditional terminal, Aer Rianta has been ordered by the Cabinet to develop Pier D as a rapid turn-around facility, with a capacity to service eight aircraft, at a cost ranging from €18m to €24m. The new structures are expected to be available for the 2003 tourist season.
Announcing the decision, the Minister for Public Enterprise, Ms O'Rourke, took quiet satisfaction in rejecting demands by one of her most vociferous critics, the chief executive of Ryanair, Mr Michael O'Leary. Describing the report by international aviation expert, Professor Rigas Doganis, on which the Government's decision was based, as "very good, very fine, clear and logical", the Minister noted that Aer Rianta's charges at Dublin airport were lower than the European average and that Ryanair had received the largest discounts.
Professor Doganis had concluded that airport charges had relatively little impact on traffic growth and that Aer Rianta should manage the proposed, low-cost facilities at the airport.
But while Ryanair lost a number of important battles, Aer Rianta did not emerge as the undisputed winner. The semi-State airport company had argued that developing Pier D did not make commercial sense and, in any event, would not lead to lower passenger service charges. It had also opposed the development on the grounds that it could pose problems for immigration authorities and have adverse security implications. In spite of those objections, Aer Rianta would now appear to have no option but to obey the Government's directive and provide for low-cost services by Ryanair, CityJet or Aer Lingus.
In terms of developing Irish tourism, the Doganis report recognised that low-cost carriers stimulated traffic in both directions and had a role to play in complementing the work of conventional carriers. It suggested that a Government-inspired campaign to reduce accommodation costs would be a far more direct incentive for incoming tourists and, in that regard, it urged special support for new Shannon and Cork routes.