Dáil Éireann Debate, Wednesday - 24 March 2021
394. Deputy Catherine Murphy asked the Minister for Transport the level of intervention he will take in respect of airlines in the context of the ongoing Covid-19 pandemic; and if he plans to offer a financial assistance package to carriers. [15863/21]
View answerThe Government has put in place a range of supports for businesses, including those in the aviation sector. The supports include the wage subsidy scheme, alleviation of commercial rates, deferral of tax liabilities, the COVID Restrictions Support Scheme, the Credit Guarantee Scheme, and the SBCI Working Capital Scheme.
As regards supports specifically targeted at the protection of employment, the Employment Wage Subsidy Schemes (EWSS) has been a key component of the Government's response to the COVID-19 crisis to support viable firms and encourage employment amid these very challenging times and has been extended to the end of June 2021.
In November 2020, the Government also agreed a revised €80 million funding package specifically for Irish aviation in recognition of the very difficult circumstances facing the sector. The European Commission has approved, under EU State aid rules, a €26 million Irish aid scheme to compensate airport operators for the losses caused by the coronavirus outbreak. The aid consists of three measures: a damage compensation measure; an aid measure to support the airport operators up to a maximum of €1.8 million per beneficiary; and an aid measure to support the uncovered fixed costs of these companies. The aid will take the form of direct grants.
The Ireland Strategic Investment Fund (ISIF), part of the National Treasury Management Agency (NTMA), has invested €150 million in debt funding in Aer Lingus. This is being made from ISIF’s €2 billion Pandemic Stabilisation and Recovery Fund (PSRF), which was established in 2020 as a key support for medium and large Irish employers whose businesses have been affected by COVID-19. This funding, finalised in Q4 2020, is a three-year debt facility that will strengthen the airline’s liquidity position and is designed to complement the ongoing investment in the airline by its parent company, International Airlines Group (IAG).
It remains open to airlines to engage directly with the relevant agencies concerned with a view to drawing down supports, and the amount of any such funding sought would be a commercial matter for the airlines concerned.
Any additional supports designed to facilitate growth of air traffic can only be progressed at the appropriate time, taking account of the outlook for the easing of travel restrictions and improving wider epidemiological conditions.
I will continue to monitor the financial impact of COVID-19 on the Irish aviation sector on an ongoing basis in consultation with relevant Government Ministers and all key stakeholders.
