Investment in infrastructure at Dublin, Shannon and Cork is funded by Aer Rianta from its own resources and financing arrangements. The expected capital expenditure by the company at each of the airports in 2003 is €19.7 million for Dublin, €2.7 million for Shannon and €21.5 million for Cork. In recognition of the role that the six privately owned regional airports can play in balanced regional development, the programme for Government provides for the continued support of the airports and for air access to the regions in general.
Knock Airport benefits considerably through a range of direct and indirect funding mechanisms, namely, capital grant assistance towards infrastructural improvements under the BMW regional operational programme of the NDP and the allocation of assistance towards marketing, safety and security expenditure. Since 2001 my Department has allocated approximately €2.4 million towards infrastructure at the airport under the NDP capital measure, of which more than €1.7 million has been paid to the airport to date. A new departure lounge and check-in area have recently been completed with grant aid of €1.3 million. The amount allocated directly to the airport this year towards marketing, safety and security is €400,000.
Scheduled air services linking Knock Airport with Dublin are subsidised through the public service obligation, PSO, programme. I am currently considering the review of air services supported by the essential air service programme, which was commissioned by the Department in March 2003 under the Government's expenditure review initiative. The review was undertaken by DKM Economic Consultants and was completed in May 2003. I am considering the outcome of this study with a view to determining my future approach to the PSO regime and I will be making decisions on the issue shortly.
