WHILE the application to build a privately owned second terminal at Dublin Airport came as a complete surprise, the premise behind the scheme is quite a simple one.

The airfield at Dublin Airport has plenty of capacity but existing passenger facilities are bursting at the seams. Why not let a private developer build a new terminal adjacent to the current airfield and use the existing runways?

The developers, Huntstown Air Park, will argue that the State will benefit, as Aer Rianta will avoid the cost of building new facilities and yet its income from landing charges will expand dramatically.

Others will claim that allowing piecemeal development at Dublin Airport is foolhardy.

Aer Rianta has said it will study the proposal, but added that at first sight, it seems to conflict with the integrated long term plans already in place for the future development of Dublin Airport".

The semi state company intends to spend £95 million on facilities at the airport, doubling its passenger capacity to 15 million.

Huntstown Air Park, controlled by Des and Ulick McEvaddy, has secured a 52 acre site adjacent to the north western perimeter of the airport complex. The landzoned for agricultural use, is owned by Mr Gerald Monks, who will receive a 25 per cent stake in the development company.

Plans for the radical scheme were submitted to Fingal County Council last week.

The Government appears to have an open mind. Mr Lowry, Minister for Transport, Energy and Communications, said "a project of this nature should and must receive careful consideration", and his officials have asked Aer Rianta for "a quick response on the implications of the project as they see it".

According to the plans, the complex, which would cost about £50 million to complete, comprises a new passenger terminal, a 150 bedroom hotel, an executive jet terminal, an aircraft maintenance hangar and three new car parks.

The 140,000 sq ft, singlestorey terminal, with bars, restaurants, retail and duty free areas, would be capable of handling three million passengers a year travelling on 33 in bound and outbound flights a day. A new aircraft apron would be built to the south east of the terminal and would be linked to the existing runway network by a new taxiway.

An 18,000 sq ft executive jet terminal would be built to the west of the passenger terminal. This area would also house the European sales and service operation for the US aircraft company Sino Swearingen of which Mr Ulick McEvaddy is a director.

The proposed new hangar would also provide a maintenance base for the aircraft leasing company Omega Air, of which both the McEvaddy brothers are shareholders.

The plan has been described as "unusual" by Aer Rianta and British aviation sources described the scheme as "quite novel". Airports are normally owned and operated by a single company, although at some US airports certain airlines operate their own terminal buildings.

Aer Rianta said in a statement the development of airport facilities was a major national decision and needed "careful consideration".

Dublin Airport, which is Aer Rianta's biggest earner, had a surplus of £33.6 million last year. Its record performance was boosted by a 15 per cent increase in traffic as passenger numbers topped eight million for the first time.

Ryanair, which had lobbied for the development of a second Dublin commercial airport at Baldonnel, has welcomed the proposal which it says "would provide valuable competition and stimulate the market".

Ryanair said the proposed new terminal would give airlines a choice and was "terrific news for Irish tourism. Collinstown, and airline operators". Ryanair has regularly complained that landing charges at Dublin are too high, but Aer Rianta says that its charges are among the lowest in Europe, a fact it says is confirmed by numerous independent studies.

Aer Rianta argued that building a second airport at Baldonnel would be folly. Campaigning against a new terminal on its own doorstep may prove a little more difficult.