Aer Lingus move to new terminal still up in the air

THE POSTURING between Aer Lingus and the Dublin Airport Authority (DAA) over whether the airline will move into Terminal 2 continues…

THE POSTURING between Aer Lingus and the Dublin Airport Authority (DAA) over whether the airline will move into Terminal 2 continues.

On Tuesday, Aer Lingus boss Christoph Mueller talked glowingly to me about how the new US customs and border protection (CBP) facilities in Dublin could help it attract transit passengers from other countries to its transatlantic services before emphasising that no deal has been agreed.

“We are still in negotiations with the DAA and of course we cannot give you any indication where we stand on that negotiation.”

Mueller described T2 as a “nice terminal” and he sees the US CBP facility “uniquely as a selling point” for attracting transit traffic.

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The airline is keen that it won’t incur any costs by moving buildings. Aer Lingus board members got a tour of T2 recently, but weren’t giving too much away.

DAA needs an anchor tenant for T2 and Aer Lingus fits the bill, given that it accounts for about 35 per cent of traffic at the airport.

If Aer Lingus refuses to budge, the DAA is faced with the choice of opening with Etihad and a couple of American airlines or mothballing the facility. The latter option is highly unlikely given that the DAA is allowed to increase the airport charge once T2 opens. The DAA has a large debt to service.

Aer Lingus this week warned that increased airport charges at Dublin airport could cost it €20-25 million this year.

The DAA, of course, is State-owned. Last year, Minister for Transport Noel Dempsey directed the aviation regulator to allow the airport manager to recover its costs by hiking the airport charge.

Dempsey also has three representatives on the Aer Lingus board. You don’t have to stretch your imagination too much to surmise that a deal on T2 will get done.

Ciarán Hancock

Ciarán Hancock

Ciarán Hancock is Business Editor of The Irish Times