'Second terminal in two years'

A second terminal at Dublin airport could be built within two years if the Minister for Transport, Mr Brennan, authorises such a development, the McEvaddy brothers, Desmond and Ulick, have said.

The brothers, who own the aviation company, Omega Air, yesterday urged Mr Brennan to seek Cabinet approval as soon as possible for the new terminal.

Mr Desmond McEvaddy said the brothers owned a large land bank on the west side of the airport and this would be the most suitable site for the terminal.

The McEvaddys are among 13 companies and consortiums that have expressed an interest in building the terminal. Mr Brennan said yesterday he would be bringing proposals to the Government next month.

He was speaking after publishing a report on the viability of a new terminal, a development that is strongly opposed by Aer Rianta chairman Mr Noel Hanlon.

The report by an assessment panel, chaired by former civil servant Mr Paddy Mullarkey, says such a project is viable, but it points out a range of disadvantages to such a development, including higher landing charges.

Despite this, Ryanair chief executive Mr Michael O'Leary said the report offered "conclusive evidence" of the need for a new terminal which would forever end the "high-cost Government-owned monopoly".

He also urged Mr Brennan to proceed with urgency so the terminal could be in place by 2005. "Irish tourism desperately needs this second terminal development and the sooner the better," he said.

The report says higher landing charges will be needed if the terminal is to produce a commercial return.

Crucially it also points out that legislation and the issuing of tender documents is likely to take considerable time, so that the terminal could not be built speedily. Consequently, it says a temporary solution - as suggested by Aer Rianta - might be the answer. Aer Rianta is currently planning to build a temporary terminal which passengers would be bussed to.

While drawing attention to the issue of charges and logistical problems, the report says none of these are "insurmountable" and a terminal is very much a viable proposition which should increase competition at the airport.

It says one major advantage of a terminal would be that airlines would have the chance to choose between airport operators.

The report stresses that airports will not gain much in terms of landing charges, but will be able to take advantage of "operational efficiencies" and fast turnarounds.

It says if the new terminal gets the go-ahead there will be no need for a Pier D, although it does accept that some kind of temporary measure is needed. The authors also insist that commercial interests are keenly interested in the project.

In relation to Aer Rianta, it says the company would be "profoundly impacted" on by the development of an independent terminal, with revenue coming under pressure in the short term, but the authors suggest Aer Rianta would "vigorously react" to competition and possibly benefit from it in the long term.