Walsh calls for new site for second terminal

Airline passengers will face higher costs when a second terminal is built at the current Dublin airport site, former Aer Lingus chief executive Willie Walsh has warned.

The development of a second terminal at the airport, would have a negative impact on business in the short term, Mr Walsh said and the tourism industry in particular would suffer.

The new terminal would be better located at a greenfield site, he said, and a new site would probably be necessary in the long term even if the capacity problem was solved by the Government's proposed second terminal.

"A second terminal is long overdue and anybody travelling through Dublin airport will know that it's crying out for more capacity," Mr Walsh told a Fine Gael tourism conference in Dublin yesterday.

Mr Walsh said he agreed with party leader Enda Kenny that building a second terminal at the overcrowded airport would have a "short term negative impact" and, he said: "in the long term the development would be better located at a greenfield site, probably as proposed by the McEvaddys".

Businessman Ulick McEvaddy had campaigned for an independently run second terminal on undeveloped lands to the west of the existing airport buildings.

Mr Walsh said he disagreed with the Minister for Transport's opposition to competing airport terminals and said competition would be key to reducing the cost to passengers.

"The significant capacity development planned will see a significant increase in passenger fees and that is not welcome. I believe that competition would help reduce these fees and be a positive development for Dublin airport and for tourism."

He welcomed the Government decision to sell Aer Lingus, but reiterated his view that the Government should not retain any stake in the airline, because it would make it less desirable for investors.