A High Court action in which Ryanair is seeking to overturn the decision to award ownership of the planned second terminal at Dublin airport to the Dublin Airport Authority (DAA) has been adjourned until October.

Ryanair is seeking declarations that the failure to consider independent ownership of Terminal 2 breaches the EU Treaty and parts of the Competition Act 2002. A further order is being sought to stop the conferring of ownership of Terminal 2 on the DAA.

Ryanair's proceedings are against the Taoiseach, the Minister for Transport, DAA, Ireland and the Attorney General. The action was mentioned before Mr Justice Liam McKechnie yesterday. He adjourned it to October 11th for mention. A date for the full hearing is unlikely to be set until the autumn.

Ryanair contends that it and Aer Lingus are the two biggest users of Dublin airport.

The DAA owns, operates and manages the existing terminal.

In August 2002, the then minister announced a decision to invite proposals for an independent terminal or terminals at Dublin airport. Advertisements invited expressions of interest and Ryanair submitted such an expression of interest.

Ryanair claims the Taoiseach, in June 2004, entered an arrangement or agreement with the trade union movement, in particular Ictu, in relation to the imposition of union work practices and recognition on any party involved with or engaged in the construction, operation or administration of Terminal 2.

The agreement would allegedly involve the imposition of similar if not identical work practices to Terminal 2 as applied to the existing terminal.

It is claimed that the Taoiseach wrongfully and in breach of duty imposed the agreement on the transport minister in the knowledge that it would be a term of the involvement of DAA in Terminal 2. Alternatively, it is alleged the minister, in concert with the Taoiseach, imposed the agreement or intended to impose it upon any operator of Terminal 2.

The imposition of the agreement is anti-competitive and in breach of the provisions of the EU Treaty and in particular Articles 10, 82 and 86, and also a breach of the State Airports Act 2004, it is claimed.

A decision in May 2005 to award ownership of Terminal 2 to the DAA was taken without any proper, full or appropriate consideration as to the merits of private ownership as distinct from semi-state ownership, in the context of Competition Rules, Ryanair claims. It was also made without any independent, objective or proper assessment as to the competing merits of monopoly State ownership as distinct from a truly independent and separate terminal ownership and operation.

If Ryanair wishes to fly in or out of Dublin airport it has no choice other than to use Terminal 1 or, when open, Terminal 2, it pleads. Irrespective of which terminal Ryanair uses, DAA will impose a fee to cover its debts and the costs of what Ryanair alleges are "these inefficient work practices".

Ryanair says it is concerned the DAA will build "over-specified facilities" which will increase debts and airport charges, imposing additional costs on Ryanair and other airport users.