New terminal ‘would reduce charges’

AER LINGUS boss Willie Walsh rejected claims by Aer Rianta that a new terminal would double charges at Dublin Airport.

Competition cuts prices and Mr Walsh said that fact had been demonstrated in the airline business.

Mr Walsh said Aer Lingus had been "speaking to a number of parties" interested in building the terminal. They include Ryanair, the McEvaddy Brothers and Ascon, all of which have produced considerable proposals in this regard, he said.

"In our view all the proposals represent options that should be explored," he said. "We believe competition is positive and we are in favour of a competing terminal," he added.

Meanwhile, Mr Walsh dealt with a number of other issues during yesterday's news conference to announce last year's results at the airline. He confirmed that a number of parties had expressed an interest in buying the catering business. Campbell

Bewley have been named as a possible buyer, but no firm offer is on the table as yet.

Aer Lingus hopes to have the issue resolved by the year end, he said. Increasingly, Aer Lingus sees itself as an airline dealing in its core competencies.

Catering is not one of those, but in response to another question he said baggage handling was and wold remain part of the company. A review of the fleet is underway and a report is due to the board before the end of next month. Under scrutiny are the short-haul planes serving Europe.

Chairman Tom Mulcahy said "it was too early to say" what the final outcome will be or how much capital spending will be required or whether the plan ultimately will necessitate significant borrowing going forward. However, the Survival Plan has stabilised the company financially which gives it more options on that front. By end 2002 it had generated free cash flow of €367m, an increase of over €197m.

The immediate aim is to continue to pare costs while attracting as many passengers as possible to fly with the airline.

Prices continue to be cut and some offerings from the airline include a €149.99 each way flight from Boston and €79.99 from Munich. On an open skies policy, Mr Walsh said he was fully behind the EU's attempts to have it introduced.

At present, Aer Lingus is restricted to flying just to three hubs in the US JFK, Boston and Chicago. If Aer Lingus could fly direct to other US cities, the increase in numbers wold be quite significant. As it is, a huge proportion of US visitors visit Ireland indirectly and are limited in the amount of time spent here. "They would also spend substantially more during their stay if given the opportunity," he said.