AFTER experiencing the best trading results so far this decade, airports authority Aer Rianta should be high on confidence with optimistic projections for growth into the mew millennium. Instead, existing EU legislation to abolish duty free sales from mid 1999 will cost the authority some £20 million a year, creating a major income substitution headache for the airports management authority. Aer Rianta is pressing the EU for further derogation to allow duty free sales to continue.

Its chief executive, Derek Keogh, speaking after the annual general meeting this week, said that, although the authority was not confident, it was "fighting the battle". Failure would necessitate "a dramatic increase in airport charges in 1999".

With buoyant growth in passenger numbers at Dublin, Shannon and Cork, group turnover grew 9 per cent to £213 million, producing 20 per cent growth in pre tax profits at £37.6 million. The duty free operation run by Aer Rianta International generated £157 million in sales, a figure excluded from general group turnover. Permission is expected shortly for a £100 million extension to Dublin airport. The development, which will increase the size of the airport by 60 per cent, represents the biggest capital investment since the existing terminal was opened in 1971.