Business and employers group Ibec has backed Dublin Airport Authority's proposals to expand capacity at the airport, despite the proposed increase in airport charges to fund the development.
The lobby group said the time for analysis was over and it was now time for action.
"IBEC recognises that the plan for additional terminal capacity comes from recommendations of experienced international experts," Ibec's director of enterprise Brendan Butler said. "It is now time to move onto the practical implementation of this plan."
Dublin Airport Authority (DAA) last week outlined plans to build a terminal to the south of the existing facilities for €200 million. The new terminal, which will be operational in late 2009, is part of a €1.2 billion capital expenditure plan sponsored by the authority. It claims the plan will allow it to process 30 million passengers per year, from the current figure of 18 million.
But to fund the development, the DAA wants to increase passenger charges by about €2.50.
Ibec said that while the proposed increase represented a significant rise, "it is necessary to deliver an efficient facility operating to the highest international standards now expected by users."
The lobby group also noted that airport charges at Dublin airport had not risen in real terms since the late 1980s. "The subsequent rationing of capital spend has resulted in the congested facilities we all experience today," Mr Butler said.
IBEC also believes that the proposed charge at Dublin airport is "relatively modest" when compared with €11.00 at London Heathrow, €9.00 at Copenhagen and Oslo airports and €8.00 at London Stansted.
"Without this critically important piece of investment in our infrastructure, the airport will quite literally be 'full' in the next two to three years and our already tarnished reputation will be further damaged," Mr Butler said.
The authority's proposals have been less well received in other quarters, however. The plan has been criticised by Ryanair which said it had not been properly consulted.