Analysis: the terminals issue The busy airport authority will now be more pressurised than ever, writes Siobhan Creaton, Finance Correspondent
Minister for Transport Martin Cullen has said a second terminal will open at Dublin airport in 2009.
However, Mr Cullen says he has no idea how much it will cost, does not know where it will be sited, but the Dublin Airport Authority (DAA) will build it and there will be a competition to select a company to operate it.
In the short term, the Government has given the green light to the airport's owners, the airport authority, to provide a new pier for aircraft-parking facilities.
This initiative is to ensure the airport can cope with the expected surge in passenger numbers over the next couple of years and should be operational by 2007.
This will mean there will be room for airlines to operate more flights from the existing terminal, but will put further pressure on the existing facilities to cope with extra passengers.
Two years later, the much talked about second terminal will open its doors to the public, according to Mr Cullen, but there will be many hurdles to overcome for this to happen.
Despite the fact that the Government received 13 expressions of interest from consortiums willing to design, finance and operate this new building, it has selected the already heavily indebted DAA to undertake the construction. The authority may also end up operating it.
In justifying this decision, the Minister has made much of the "triple safeguard" that will ensure the new terminal will be cost effective and will operate at maximum efficiency.
This entails the DAA consulting its customers - the airlines that operate from Dublin airport. Aviation experts will then be brought in to stand over the costings and the Commission for Aviation Regulation will set the charges.
This announcement will not please two of the parties that have been at the forefront in terms of applying pressure on the Government on the second terminal - aviation businessman Ulick McEvaddy and Ryanair's Michael O'Leary.
They are likely to mount a legal challenge on competition grounds, a move that could bring some further delays.
Aside from such a challenge, it is highly unlikely that Ryanair would participate in the consultation process with the DAA on the design of the new terminal, given that it believes this organisation should not be let anywhere near the new terminal.
And while the Minister had few answers to specific questions on the second terminal, he was in a position to clearly state that whoever is selected to operate it, will have to sign up to the terms and conditions of the mid-term review of Sustaining Progress agreed between the Government and the Irish Congress of Trade unions.
The Minister also has plans for a third terminal, which may be operated by the authority, either on its own or in a joint venture, or possibly by an independent operator, he said.