Dáil Éireann debate -
Thursday, 12 Oct 1995

Vol. 456 No. 8

Written Answers. - Aviation Licence Costs.

Robert Molloy

Question:

23 Mr. Molloy asked the Minister for Transport, Energy and Communications if his attention has been drawn to the fact that the cost of licences has been identified by the management of Galway Airport as the principal reason for lack of scheduled air services to the United Kingdom and Europe, resulting in gross under-utilisation of the valuable airport facilities provided; if he will undertake a review of all aviation licences to ensure that they are reasonable and competitive; and if he will make a statement on the matter. [14709/95]

Minister for Transport, Energy and Communications (Mr. Lowry)

The actual cost of an air transport operating licence which must be issued by my Department to permit a carrier to operate commercial air services is not a significant element of overall start up costs. The level of once off licence fee is in the range of £250 to £1,000 depending on the size of the operation.

The Deputy may, however, be referring to the actual capitalisation requirements for new licence applicants. These are mandatory requirements which are set out in Council Regulation (EEC) No. 2407/92 on licensing of air carriers and are designed to ensure that new carriers are established on a sound financial basis and that the proposed services can be operated on an economically viable basis. This is in the long term interest of both the applicant and the airline industry in general. The financial requirements in relation to small carriers i.e. those exclusively engaged in operations with aircraft of less than 10 tons maximum take off weight or less than 20 seats, are less rigorous than for larger operators.

I have asked my Department to let you have full details of the financial requirements for new scheduled operators.