Air passengers will have to wait until next year for a low-fare terminal atDublin Airport, writes Arthur Beesley
The decision to sanction special "facilities" at Dublin Airport for low-cost airlines is just one of the measures adopted by the Government yesterday to boost tourism.
While improving the prospects of lower fares for passengers, the facilities will not be available until next year. For passengers hoping to see cheap flights to new destinations soon, this is worth noting.
It is significant also because the Government's attention to tourism rose after the attacks on the US last September.
With gloomy forecasts for the tourism business in general, the Government made a point yesterday of asking hoteliers, B&B owners, publicans and restaurateurs to improve price competitiveness.
In addition, the Minister for Tourism, Dr McDaid, was asked to co-ordinate the marketing of services by airlines, airports and the State tourism bodies. The implication here was that such co-operation has been missing until now. The perpetual war of words between Aer Rianta and Ryanair confirms as much.
The substance of the Government's decision rests with the move on facilities at Dublin Airport. Aer Rianta has already rejected a Government working-group demand to build a new terminal known as Pier D. Thus its promise yesterday to provide "suitable facilities" stands as something of a turnaround. However, the company noted that Pier D "may not be the correct option".
Its chairman, Mr Noel Hanlon, said the 1997 design did not meet current safety and immigration requirements. The crucial decisions would be taken by its board, in conjunction with the Minister for Public Enterprise, Ms O'Rourke.
For two reasons this means Pier D will probably go ahead. First, the pier has planning permission; second, the Government wants it. Note also that Aer Rianta was asked to develop the facility "having regard to the planning permission" already secured.
So what does it mean for passengers? Little enough in the short term. The construction of new facilities at Dublin Airport will reduce congestion, but new extensions opened last year mean that the dangerous conditions seen recently have eased.
Assuming airlines are prepared to lower their fares to use the new facility, the key question is when? The field will not be limited to Ryanair. As Ms O'Rourke put it yesterday, airlines such as Aer Lingus and CityJet are expected to use the terminal.
The Minister also rejected suggestions that the Government was electioneering when asking Aer Rianta to build the facility.
The debate until now has been dominated by Ryanair, which promised several years ago to deliver one million additional tourists into the State every year in return for a two-pronged deal. It wanted to build a special terminal, but only on the basis that landing charges would be set at €1.27 per person.
For passengers who have enjoyed low fares since Ryanair challenged the monopoly rates charged by Aer Lingus and British Airways, it seemed an attractive option. Ryanair is expanding rapidly, adding new "hubs" throughout Europe. The company promised that Irish passengers could join their British counterparts on direct flights to sunny destinations such as Pisa in Italy and Carcassonne in France.
But the Government rejected the plan, arguing that any landing fees could not be fixed. In addition, it said a private company such as Ryanair could not build on State land just because it wanted to.
Despite the colourful language and frequent protests of Ryanair's chief executive, Mr Michael O'Leary, the issue appeared to go away.
Then the US was attacked. With airlines worldwide - Aer Lingus among them - facing the worst crisis yet in the industry, Ryanair escaped the downturn. At this stage, Mr O'Leary approached the Government again, promising to flood the State with tourists in return for concessions on charges and a special terminal.
His promises were dismissed in a Government-commissioned report by the London-based aviation expert, Prof Rigas Doganais. He said low airport charges should not be used as the primary instrument for stimulating tourism. Such fees, he said, "have little impact on airlines' route planning decisions". They had a "minimal impact on total holiday costs".
In one telling comment, Prof Doganis said high add-on charges at Stansted Airport in London had not stopped Ryanair from developing routes there.
The professor did note, however, that low-fare airlines needed terminals with fast turnaround times. Such airlines are keen to cut costs, and high turnaround times mean that aircraft spend more time in the air. Thus did the Government move on the Pier D plan, seeking a "rapid turnaround facility".
Ryanair had no comment to make yesterday on the decision, which fails to meet its demand for a new terminal tied in with low landing fees.