Government announces plans for third terminal

Transport Minister Martin Cullen has announced that a privately-owned third terminal in Dublin Airport will be built and plans for it will be drawn up immediately.

Details of the strategy to build a second terminal, owned by the Dublin Airport Authority, was also unveiled.

The facility will be built by 2009, followed by a Pier D extension to the airport in 2007. Its operator is to be selected by a public tender process.

The sale of a majority stake in Aer Lingus is expected to raise around €300m but the state could retain a 25% stake.

“It is a brave decision but it is the right decision,’ said Mr Cullen.

“We will make sure that the State keeps a major blocking share in the company.”

Fine Gael Transport Spokeswoman Olivia Mitchell TD said the Government’s decision to build the third terminal was admitting that the second terminal would not be big enough.

“There is no logical reason for applying different criteria to these two terminals, other than as a political sop to the PDs,” said Ms Mitchell.

“The consumer and wider national interest has been ditched in favour of a party political fudge that serves as a textbook example of how not to govern or make decisions.”

Opposition parties said the decision to allow the Dublin Airport Authority to build the second terminal on their lands at Dublin Airport “is the worst possible outcome of this tortuous and inexplicably long process”.

Ms Mitchell condemned the plan the decision to allow the Dublin Airport Authority to build the second terminal on their lands at Dublin Airport, saying that it is “the worst possible outcome of this tortuous and inexplicably long process”.

“After all the reports, all the debate, all the advisers, and all the delay, the Government has decided to let a monopoly control the airport terminals, on a site that is too small, in a location that is inherently inefficient.”

Businessman Ulick McEvaddy, who had put in a bid to build a privately-owned terminal, said the location of the facility was wrong.

“It will be chaos. It will be worse than chaos. It will be a total building site for five years,” he said.

The aviation package approved by the Cabinet includes several measures to ensure best practice, said Mr Cullen. These include:

* Financial experts will be appointed to advise the Government on the size, type and timing of the Aer Lingus sale transaction.

* The building of a new Pier for aircraft parking stands at Dublin Airport, available from 2007.

* The building of a Dublin Airport Authority-owned new Terminal (Terminal Two) at Dublin Airport to open in 2009.

* A triple safeguard – consultation, verification, regulation – to ensure maximum efficiency and cost effectiveness of the building of Terminal Two

* An open tender competition to select the operator of Terminal Two. This process will be organised by an independent expert panel.

Mr Cullen said: “This decision gives Irish aviation a clear strategic direction and an unambiguous mandate for growth.

“The net result will be a stronger aviation sector and a better future for the economy, customers and staff.

“We have put in place the first ever comprehensive plan for the long-term success and growth of Irish aviation.”

The minister said the majority sell-off allows Aer Lingus to secure funding for new aircraft and in turn to compete and win new routes.

“Aer Lingus flying to and from more destinations means the national airline can offer greater choice to consumers, open new markets for Irish tourism and grow jobs.

“For too long, crisis plans rather than expansion plans were the norm at our national airline.

“A sense of never-ending uncertainty was bad for the staff, the public and the country as a whole.

“Today’s decision ensures that for the first time, there will be investment for growth rather than just short-term funding to help in a time of crisis.”

The Labour Party said the sell-off of a majority stake in Aer Lingus was a shameful decision.

“The sale is likely to raise, at most, about 300m euro,” said Transport Spokesperson Roisín Shortall.

“This will disappear into an already overflowing exchequer and will make little or no difference to the financial position of the country.

“Not a cent of this money will be invested in the company and it will appear on the Aer Lingus balance sheet as a major debt.

“The temptation for the new owners will be to asset strip the company to clear the debt,” she added.

SIPTU welcomed the decision to allow the DAA to build the second terminal but said it was concerned about it being privately run.

“Nearly all airports are run by a single operator,” said spokesman Mick Halpenny. “There is no evidence that competition at airports has brought down charges for consumers.”

“Dublin has already one of the lowest tariffs of any comparable airports in Europe.”

SIPTU said it would be seeking a meeting with Mr Cullen in coming days to seek clarification on commitments given to ICTU by the Taoiseach.

Progressive Democrats Transport Spokesman Senator Tom Morrissey said the Government’s aviation strategy was good news for the aviation sector, the travelling public and the people of North Dublin.

“The operation of the second terminal will be decided under an open, transparent and competitive tender process, with an independent body supervising that process.

“The result will be improved efficiencies and competition at Dublin airport to the benefit of all those who use the airport.

“The commitment to the third terminal will give Dublin Airport the additional capacity it needs to meet growing demand in the years ahead.

“Today’s announcement marks a good day for government policy and for aviation.”