DAA to reveal second airport terminal details

DUBLIN Airport Authority (DAA) will today reveal plans for the controversial new second airport terminal that is estimated to cost up to €200 million.

The DAA has been consulting with airlines on the second terminal plan since May when Transport Minister Martin Cullen gave them the go-ahead to build and own it.

And today the DAA will announce that it is ready to proceed with the design, planning and costing of the second terminal. Tenders have already been invited for the building, expected to be opened by 2009.

Growing passenger numbers at Dublin Airport hit 17.1 million last year and are expected to rocket to 22 million by the time the new second terminal is built.

The DAA is also expected to announce details of a new pier to provide more parking bays for planes in the existing terminal as part of the overall development plan for the airport.

When the Cabinet gave the DAA the go-ahead to build and own the second terminal, DAA chief executive Declan Collier said preliminary assessment showed building costs could run between €130m and €190m.

Mr Collier said site preparation and infrastructure cost could come to €100m bringing the total cost to around €290m.

But yesterday a DAA spokeswoman said the actual costs would now be considerably lower and more "in the region of €200m."

Mr Collier also warned last April that the building of a second terminal at Dublin Airport would lead to increased passenger charges, which are currently capped at €5.

Sources at Dublin Airport predicted yesterday that the building of the second terminal was likely to put an extra €2 to €3 onto passenger charges.

The Department of Transport pointed out yesterday that the second terminal will not cost the Exchequer anything because it has to be funded totally by the DAA.

But with the DAA already in debt by almost €400m on its balance sheet, the issue of debt will now become a serious concern.

The long-running saga of the second terminal at Dublin Airport resulted in a major clash between the coalition partners Fianna Fáil and the Progressive Democrats earlier this year.

The Progressive Democrats wanted the private sector to run the project, arguing that this would bring more competition and lower airfares.

However, following intense lobbying from airport unions, Fianna Fáil insisted that the second terminal should remain in public hands and the DAA would build and own it.

The running of the second terminal will be put out to tender, but the DAA can also put forward proposals to run the terminal.