Ryanair will apply over the next couple of weeks to the High Court for a judicial review of plans for Terminal Two (T2) at Dublin airport including a stay on all construction work.
The Dublin Airport Authority (DAA) said yesterday it has placed construction and engineering contracts worth about €200m ahead of an October start date for the construction of the second terminal at the airport subject to challenges.
But Ryanair is going ahead with its challenge to T2.
"We are in the process of preparing documents which should be filed at the High Court within the next couple of weeks," said Jim Callaghan, Ryanair's head of regulatory affairs.
Ryanair first said in August that the new terminal is in breach of planning guidelines and that its High Court action would also centre on the lack of access to the airport.
Mr Callaghan said that Ryanair is not trying to block development at the airport but that the option of a low-cost terminal should be investigated.
Yesterday, Declan Collier, chief executive of the DAA, said the Ryanair challenge was regrettable and costly.
"We regret any delays. Every month we are delayed it will cost us between €3m to €5m.
"I think it's very strange coming from an airline that prides itself on costs and efficiencies. I hope it will review its position."
T2 was given planning permission approval in August 2006 and is due to be completed by the end of 2009.
It is expected that it will be open to the public in April 2010.
Mr Collier was speaking after an address to the Leinster Society of Chartered Accountants where he gave an overview of developments at the airport including T2 and eventually terminal three.
"The €200m in contracts range across a number of sectors including the excavation of the site, engineering and steelworks as well as logistics.
There will be about 3,000 workers at peak on the site.
He said the airport will manage 250m passengers over the next ten years and deliver on a €2bn investment programme.
He added that Dublin is the fastest growing major airport in Europe and that it plays a pivotal role in the Irish economy supporting at least 50,000 jobs nationally.