John O'Sullivan, the founder and former owner of Aircoach, has set up a new bus company with his wife Una and awarded it the contract to operate shuttle services from their Quickpark car park to Dublin Airport.

This contract was held by Aircoach and was worth €1.2 million a year to the company. Last Bus began operating the service last Sunday.

Mr O'Sullivan is increasing the daily charge at Quickpark by 25 per cent from €6 to €7.50 from tomorrow. The Dublin Airport Authority's long-term car parks cost €8.50 a day. When VAT is stripped out, the price rise could increase income at Quickpark by €1.5 million a year.

Last Bus has leased four Mercedes Citaro buses, which can carry 60 passengers each. The company recently received an operator's licence from the Department of Transport. Mr O'Sullivan said the new service would have buses running every five minutes to the airport. "We were aiming for but never achieved better than every 10 minutes [ with Aircoach]," Mr O'Sullivan said. "The most important issue for our customers was the quality of the connection [to Dublin Airport] and we made the decision to take control of that ourselves."

Mr O'Sullivan founded Aircoach in 1999, running a service from Dublin city to the airport. The Clareman sold 90 per cent of the company to First Group, a British operator, in 2003 for €15 million before selling the balance for €1.5 million. He parted company with Aircoach in mid-2005.

Mr O'Sullivan said the increase in car park charges reflected a significant investment in new software for an improved online booking system and an increased rental fee at the site, which is owned by developer Gerry Gannon.

Quickpark made a profit of about €1.2 million last year with a similar level projected for 2007, Mr O'Sullivan said. On average, the 3,500-space car park is more than 80 per cent full each day.

Mr Gannon is seeking permission from Fingal County Council to expand the car park to 6,000 spaces by purchasing adjoining land from the Royal College of Surgeons.

Mr O'Sullivan said he plans to expand Last Bus's activities. "It is only a matter of time before the public transport market is opened up," he said.

Aircoach, meanwhile, has retained the contract to operate shuttle buses to the Dublin Airport Authority's long-term car parks. The five-year deal is believed to be worth more than €3 million a year.