AN investment programme to relieve passenger congestion at Dublin and Shannon airports will get under way in October.
Aer Rianta will spend £97 million in Dublin and £23.5 million in Shannon.
The decision to develop Dublin confirms the Government's opposition to the plan by Dr Tony Ryan, chairman of Ryanair, to build an alternative airport at Baldonnel.
But Dr Ryan appeared to have won a concession from the Minister for Transport, Energy and Communications, Mr Lowry, who said the development plans for Dublin Airport should reflect the growing trend towards a low cost aviation environment.
Dr Ryan has criticised the charges at Dublin Airport where, he claims, Aer Rianta abuses its monopoly position.
Mr Lowry had requested Aer Rianta to reduce the standard charge per passenger by 26 per cent from January 1st 1997 for a low cost, no frills service in consultation with low cost operators such as Ryanair.
A spokesman for Aer Rianta said yesterday that passengers leaving from the main Pier B building had the use of airbridges to board aircraft.
Passengers from Pier A generally had to walk to aircraft, which amounted to a cheaper service.
A Ryanair spokeswoman said no consultation had taken place between it and Aer Rianta about extending facilities at Dublin Airport.
The investment programme includes £32 million to be spent over the next two years on a passenger handling pier at Dublin Airport.
A further £65 million will be spent on an extension to the existing terminal building which will increase its size by 60 per cent.
Passenger traffic through Dublin is expected to reach 11 million by the year 2001. The present terminal was built in 1972 and was designed to eater for five million passengers a year.
There are plans for new departure lounges, extra baggage handling, customs and immigration and new commercial outlets.
Aer Rianta faces the abolition in 1999 of intra EU duty free sales and must try to replace the lost revenue with more duty paid sales.
Mr Lowry said yesterday he would support a campaign to make the EU Commission change its mind on this issue.
The Minister also said his Department was examining a proposal by a private sector company to build a maintenance facility at Dublin Airport.
The Huntstown Airpark proposal comes from Mr Des and Ulick McEvaddy, owners of Omega Air and prominent Fine Gael fund raisers. A spokesman for Aer Rianta said yesterday the company would meet the McEvaddys next week.
The spokesman added that Aer Rianta did not believe Huntstown was appropriate for the long term development of Dublin Airport but he believed there might be the possibility of a "land swap".
Expansion of the passenger terminal at Shannon Airport will cost £23.5 million and will include a new roadway system to be built in front of the terminal building.
Mr Lowry told a press conference in Shannon. "The development programme which I have announced today is no mere sop from the Government to the mid west. It is a definite acknowledgment by the Government of the importance of the airport to the economy of the mid west region.
Clare Fianna Fail TD, Ms Sile de Valera, welcomed the investment in Shannon Airport but said it should be seen as only a first step in upgrading the region.