Report on second terminal challenges O'Leary

The new €600 million second terminal project at Dublin airport is "within industry norms" for a European capital city, a Government-commissioned report has concluded.

Ryanair, Europe's largest low-cost airline, has described the facility as too costly, badly designed and in the wrong location. However the tone and findings of the report by consultants Boyd Creed Sweet appear to contradict this. Boyd Creed Sweet, chartered surveyors, produced the report in association with Parr Architects and environmental consultants Faber Maunsell.

The report was commissioned by the Department of Transport in March. It hired the consultants to carry out independent verification of the project's costs and the consultation processes engaged in by the Dublin Airport Authority (DAA). It is believed the report was submitted to the department in September.

The main conclusion is that: "The estimated cost of terminal two on a cost per square metre basis lies at the mid-point range of the UK terminal buildings benchmarking study carried out by the DAA's team of consultants."

It then adds: "The verification team has independently verified the benchmarking exercise and the cost plan, and concludes that the estimated cost is within industry norms for this type of project in a European capital city."

The report rejects the idea that the terminal will be filled with too much retail space. It says a heavy emphasis on retail space and food and beverage outlets has been adopted by major airport operators like BAA in the UK.

On retail space it says "the total provision is within IATA [ International Air Transport Association] parameters and . . . it compares well with other international airports".

Two months ago Ryanair chief executive Michael O'Leary said airports all over the world were being built for much less than the DAA was proposing. He said the DAA benchmarked itself against monopoly airports at Paris, London and Frankfurt. But when compared to other British and European airports which built low-cost facilities, it was a different story.

However the Boyd Creed Sweet report is upbeat about the costings behind the project, pointing out that under each cost heading a 5 per cent contingency fund for unexpected developments is included.

It also says the facility and layout of the buildings "is good".

The report also finds that DAA's consultation processes accord with best practice. The project's overall cost will be €609 million, with the terminal building costing €395 million.