I thank the Chairman for the invitation to address the committee. I apologise on behalf of the chairman, Mr. McGann, who is unable to attend due to illness. We are appearing at this meeting to discuss the DAA proposals for Dublin Airport, relations with Cork and Shannon and the arrangements for the independence of those airports. In this context, it is important to restate the policy background underpinning the key business objectives of the DAA, including the objective of delivering the required capacity at Dublin Airport to serve more than 30 million passengers by 2015. In this context, the Government's 2005 aviation action plan specifically provided for the delivery of pier D by 2007 and of terminal 2 in 2009.
A second objective is to fundamentally transform the passenger experience at our airports and a third is to strive to effect the separation of Dublin, Cork and Shannon as commercially self-sustaining, independent airports, as stipulated by the State Airports Act 2004. I am pleased to report that significant progress has been made towards each policy objective over the past year and that 2008 will see further significant developments.
I refer to the DAA's transformation programme at Dublin Airport. Dublin Airport has been one of the fastest-growing major European airports for some years. With slightly more than 23 million passengers last year, it is now Europe's eighth busiest airport in terms of international traffic. It serves more international traffic than JFK Airport, LA International Airport and the airports in Zurich and Rome. However, as is clear to the vast majority of its stakeholders, its passenger processing and airfield capacity has not kept pace with traffic growth, thereby leading to a less than satisfactory travel experience for many customers, particularly at busy travel periods. The Government's aviation action plan of May 2005 addressed this capacity deficit and directed the DAA to deliver the facilities required as swiftly as possible.
In the two and a half years since the Government's decision, the DAA has responded effectively and efficiently to the requirements of its shareholders and airline and passenger customers. It has developed a master plan for the progressive development of infrastructure at Dublin Airport and consulted intensively with airlines and other key customers about their business plans and capacity requirements. Following a full planning appeals process, it has secured planning permission for a new 75,000 sq. m. passenger terminal, an adjoining major boarding gate facility and a new parallel runway. It has also secured indications from the Commission for Aviation Regulation that more than 95% of the first stage €1.2 billion investment plan for Dublin Airport will be remunerated and delivered a spacious new boarding gate facility, Pier D, on time and within budget. It has also delivered a host of projects and measures to mitigate the impact of congestion in the existing passenger terminal. These measures include the doubling of passenger security and customer care staff to more than 600, the creation of a new check-in facility, Area 14, beneath the arrivals floor, and the construction of a new centralised immigration facility to cater for more than 50% of the airport's inbound passengers. Construction work has commenced on the second terminal, T2, while this year the DAA will invest €450 million, or more than €1 million per day, as the airport's transformation programme gathers momentum and scale.
Perhaps it is worth reminding the committee at this stage that the investment programme is funded through a combination of regulated passenger charges, borrowings and commercial income generated by the DAA. Dublin Airport which receives no direct State funding has the lowest level of passenger charges of any major European airport. Recent IATA and Association of European Airlines, AEA, statistics show that globally we have the fourth lowest passenger charges of any major airport.
As a consequence of the protracted planning appeals process, construction of T2 will now be completed in the fourth quarter of 2009. Following a rigorous commissioning and testing phase, the new terminal will open to the public in April 2010. T2 which will handle up to 15 million passengers per year has been designed around passengers' needs and will provide them with a pleasant and efficient travel experience. While T2 is the largest single element of the programme to transform Dublin Airport, approximately 70 additional construction projects will also be progressed during 2008. Work will begin shortly on a €55 million extension to the existing terminal which will provide more circulation space for passengers, an enlarged and reconfigured check-in area at the northern end of the terminal and additional catering and retail space.
The investment programme includes many areas of unseen infrastructure such as the upgrading of services and utilities and the provision of new aircraft parking stands and taxiways which will make the operation of the airport more efficient from a user's point of view. The DAA is determined to deliver at Dublin Airport the 21st century aviation gateway which Ireland and its economy requires. This gateway will in the next ten to 15 years manage in excess of 30 million passengers per year in a comfortable and cost effective manner. It will connect Ireland directly to each of its key trading blocs and contribute significant additional employment and national wealth. The company is also committed to ensuring the highest standards of environmental sustainability throughout its development programme.
While Dublin Airport is being transformed, the DAA acknowledges that the travel experience for many of its customers is still far from satisfactory. We believe the congested nature of the existing facilities at the airport is the principal reason for this situation. However, we are also mindful that we must bring continued focus to the quality of services provided by our staff and that of our concessionaires.
I will turn now to the issue of airport separation. The State Airports Act 2004 provides the legislative basis for the restructuring of the DAA and the establishment of Cork and Shannon airports as self-sustaining independent business entities. The Act stipulated that separation of the airports would only take place following completion of separate business plans for each airport which would satisfy the Ministers for Finance and Transport as to the state of each airport's operational and financial readiness.
This business planning process has proved complex and protracted, principally because key issues affecting one airport had implications for the other airports' business plans and needed to be addressed before all three plans could be completed and submitted. I am pleased to confirm to the committee that in December 2007 the DAA forwarded business plans in respect of Dublin, Shannon and Cork airports to the Department of Transport. These business plans provide the basis for the initiation of discussions with the Department on the critical issues affecting the separation of Cork and Shannon airports. While I appreciate that confirmation of the completion of these plans may generate many questions on the part of committee members as to their content, the DAA believes it would not be appropriate to elaborate on them pending their consideration by the Department and its advisers. I remind the committee that until the separation of Cork and Shannon airports takes place, the DAA has ultimate responsibility for their employees, assets and business contracts.
All three airports continue to perform well. I have referred to Dublin Airport's continued strong growth. Last year was the first full year of operations at the new Cork Airport terminal with a record 3.2 million passengers availing of an increased number of flight options from the southern gateway. Shannon Airport had a record year in terms of international business growth in 2007, with almost 3.1 million passengers. When domestic traffic volumes are added, Shannon Airport achieved a total passenger throughput last year of 3.6 million. Furthermore, in securing the CityJet-Air France service to the Paris Charles de Gaulle hub, global connectivity from Shannon Airport has been retained.
I thank the Chairman and members of the committee for their time and courteous attention. We are happy to help them with any questions they may have.