Industry groups welcome second terminal

Reaction: The tourist industry last night warned it was vital that the State speedily implements its plans to build a second terminal at Dublin airport and sell a stake in Aer Lingus.

Ryanair chief executive Michael O'Leary, who has been calling for the new terminal to be developed by the private sector, last night said the proposal to allow the DAA to build it was a breach of the Government's election promises.

"The Taoiseach has dithered for three years on providing a second terminal at Dublin airport," he said. "As a result, Dublin airport today is not just a slum, it is a testament to the failure of Bertie Ahern to keep his own election promises."

However, most industry groups last night reacted positively to the news. The national tourism development agency, Fáilte Ireland, welcomed the decision, but warned that the industry's growth depended on it being implemented quickly.

Chairwoman Gillian Bowler pointed out that the Tourism Policy Review Group has set a target of doubling visitor revenue to €6 billion a year by 2012. "It is clear that the expanded facilities at Dublin airport will be central to meeting these strategic objectives," she said.

Eamonn McKeon, chief executive of the Irish Tourist Industry Confederation (ITIC), said that the Aer Lingus and Dublin airport proposals would benefit the industry.

Mr McKeon said this would allow the airline to extend its fleet and develop the US and other long-haul markets. "In that regard, ITIC urges the Government to press ahead now to conclude the renegotiation of the bilateral agreement with the US, which limits the number of cities from which services can operate to Ireland."

The Irish Hotels Federation said it welcomed the plans to expand Dublin airport. Its chief executive, John Power, said the Government had to stick to the deadlines set out in last night's announcement. It is planning to have the new terminal completed in four years. "The definitive timeframes indicated by the Government must be adhered to," he said.

The Impact trade union, which represents pilots and other aviation workers, warned it was vital that the airline continued with direct flights between the US, Dublin and Shannon. Deputy general secretary Shay Cody said this was a real concern for passengers, business and Aer Lingus staff.

Aer Lingus itself welcomed the decision in relation to its own future. Chairman John Sharman said it was good news for the airline. "Today's announcement starts the process of securing more diverse sources of funding needed to grow and develop the business," he said.