Brennan asks Aer Rianta to hold back on terminal

TRANSPORT Minister Séamus Brennan has asked Aer Rianta not to sign any contracts on its new 70 million terminal at Dublin Airport until a final decision is made on a proposed independently-run second terminal.

Aer Rianta got the go-ahead from An Bord Pleanála yesterday to build the new low-cost airline Pier D, despite objections from Ryanair.

But it was not clear last night if the company will proceed with the project as Mr Brennan has asked Aer Rianta not to make any irrevocable decision on it until the issue of the second independently- run terminal has been clarified.

"The Minister is expected to revert to Government on the issue by the end of April," his spokeswoman said.

Mr Brennan will also reveal his plans for the State's three airports Dublin, Cork and Shannon by the end of April. This could see Aer Rianta's control of the three main airports diluted with the setting up of three independent companies.

As the main shareholder in Aer Rianta, Mr Brennan has the power to direct the company not to proceed with building Pier D if he feels there is no need for it.

The Aer Rianta board will meet later this month to consider Mr Brennan's request not to make any irrevocable decisions on Pier D - particularly its site.

But yesterday the company welcomed An Bord Pleanála's decision to give Pier D the go-ahead.

"The project has already gone to tender and we hope that it will be operational by the end of 2004," a company spokesman said.

Aer Rianta has already budgeted for the new terminal that is needed to cater for the projected 20 million passengers Dublin Airport will have by the end of the decade. The cost of building Pier D will be 50 million and another 20m to build a bridge connecting it with the main terminal.

An Bord Pleanála gave the go-ahead for the 12-passenger aircraft parking terminal subject to seven conditions which include specifications on car parking, water supply and design. Ryanair, one of the main objectors to the new Aer Rianta terminal, is among 13 groups who have expressed interest in building a second independently-run terminal at Dublin Airport.

Mr Brennan indicated earlier this month that he still supported this project despite forecasts that airport charges will have to rise for the independent terminal to be financially viable. Mr Brennan must now decide if he will seek tenders for the second independently-run terminal.