Ryanair to submit terminal plan in face of Aer Rianta opposition

Ryanair is to submit a proposal next week to the Government to build its own airport terminal near Dublin Airport.

Ryanair is to submit a proposal next week to the Government to build its own airport terminal near Dublin Airport.

The chief executive of the airline, Mr Michael O'Leary, said yesterday the company was prepared to spend £20 million on a new terminal as a way to break "the totally unfair and appalling monopoly of Aer Rianta".

He said the airline paid Aer Rianta £10 million a year for use of a terminal at Dublin airport and the spending of £20 million on a new terminal would mean "a payback within two years".

Mr O'Leary was speaking at a lunchtime meeting of the Dublin Chamber of Commerce. The plans for the terminal are expected to be submitted to the Minister for Public Enterprise, Ms O'Rourke, by Friday, May 8th.

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Mr O'Leary said the terminal could be built on Aer Rianta land adjoining Dublin Airport and would have sufficient number of gates for Ryanair to operate more efficiently than at present. He added a new terminal would mean lower fares for customers.

Mr O'Leary said attempts by the Mr Ulick and Mr Desmond McEvaddy's company, Hunts town Air Park, to build another terminal near the airport, which is currently the subject of proceedings in the High Court, was "very welcome".

"We are submitting our own proposal, but if the McEvaddy brothers get clearance for their terminal, we would be quite happy to use it," said Mr O'Leary.

A Bord Pleanala hearing involving Huntstown Air Park and Aer Rianta is currently suspended, pending a judicial review in the High Court. The action was taken by Huntstown, which is seeking access to a study done by Aer Rianta on expanding the airport.

It is likely Aer Rianta will object to Ryanair's plan to build a terminal. Mr O'Leary said there was a "major need" for a new terminal as facilities at Dublin Airport are "disgraceful and overcrowded". A spokesman for Aer Rianta last night said there was no need for a new terminal and existing facilities at Dublin Airport were capable of being extended to take account of any increase in passenger traffic. He added that the Irish Aviation Authority had concerns about proposals for new terminals near the airport.

It is understood Ms O'Rourke could direct Aer Rianta to give over some of its land for the building of a new terminal, pending planning permission.

On the subject of the Government inquiry into the the Ryanair dispute which led to the closure of Dublin airport, Mr O'Leary said he did not expect it to contain any recommendations about union recognition. "All the 39 baggage handlers are happily back at work at the moment," he added.