Gerry Byrne/DUBLIN

Ireland's Minister for Defence has halted plans by Ryanair chairman Tony Ryan to establish a commercial fixed base operation (FBO)at the Irish Air Corps' Casement Aerodrome in Baldonnel, West Dublin.

Ryan's company, Tara Aerospace, which is separate from the airline company, had planned to construct a business jet and private helicopter terminal as part of a joint venture with Ogden, the US FBO and leisure services group. Three years ago, a push by Ryan to convert Casement into a low-cost terminal for Ryanair was also rejected.

Ogden is believed to have formally pulled out of the project, although Tara says that the US group is still interested.

Industry sources suggest that the Tara/Ogden joint venture's plans were rejected for legal reasons. Although the Air Corps' main base is used by private flights on an ad hoc basis, Irish law prevents any formal arrangements as required by Ryan's plan because the Irish Civil Aviation Authority has no supervisory powers there. Legislative changes are being considered by the Department of Public Enterprise, which oversees the authority, but no immediate action is expected.

Ryan originally wanted to lease buildings and hangars from the Air Corps and build a luxury executive terminal. Estimates prepared in 1996 by the Department of Defence suggested a requirement for up to IR£7.5 million ($10 million) to prepare Baldonnel for business aviation use.

Ryan plans to invest up to IR£10 million in the FBO, of which half is earmarked for buildings and equipment, and the rest for the part lease of two business aircraft and four helicopters, which would be used for charter and fractional ownership operations.

Irish Department of Defence officials also support the use of Baldonnel by private aircraft, but they believe the airfield would need to become a properly licensed airport. They also feel that expenditure on upgrading the airfield would be difficult to justify in the light of recently completed improved access to Dublin Airport.

Ryan outlined his proposals to the Irish Government in February. The joint venture's plans included the development of VIP passenger and aircraft services at Casement, and the use of Air Corps facilities, including air traffic control and emergency services.

In March, Tara negotiated a 50% stake in European Corporate Air, which has a seven-seat business aircraft and will give Tara access to an air operator's certificate.

Source: Flight International