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Airport Policy

Dáil Éireann Debate, Thursday - 17 June 2021

Thursday, 17 June 2021

Questions (20)

Joe Carey

Question:

20. Deputy Joe Carey asked the Minister for Transport if he will provide multi-year CAPEX funding to enable Shannon Airport to navigate its way out of the current crisis; if he will also provide a fixed euro amount per passenger to subsidise airport charges for airlines as this type of funding is needed to grow traffic; if it will be ensured that provision is made to establish a regional route marketing fund administered by Tourism Ireland on a multi-annual basis for Shannon Airport, as the restoration of Ireland’s air services is essential to connect the mid-west and western regions of Ireland to global markets which drive the industrial, tourism and international service sectors; and if he will make a statement on the matter. [31116/21]

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Written answers

I would like to thank the Deputy for this question.

The Deputy will be aware that one of the Recommendations of the Aviation Taskforce was that a stimulus package should be put in place for each of Shannon, Cork, Ireland West, Kerry and Donegal airports to encourage the rebuilding of traffic. As part of this package, the Taskforce recommended that the State should directly provide the airports with a common fixed sum per passenger which will be used by the airports to stimulate traffic by reducing airport charges for airlines and restoring and growing passenger numbers to the regions.

In response to this and other recommendations of the Taskforce, Government put in place an €80m aviation support package which was announced on 10 November. This package includes €32.1 million for a new COVID-19 Regional State Airports Programme for Shannon (and Cork) Airports. Under this Programme, Shannon Airport will have access to capital and operational supports in 2021. In relation to multi-annual CAPEX supports, the Government provided Shannon Airport with €6.1m in emergency capital funding last year and a further €6.3 million in 2021 under the COVID-19 Regional State Airports Programme to date this year.

Following consultation with the EU Commission, a State aid approved Irish aid Scheme worth €26 million to compensate airport operators for the losses caused by the COVID-19 pandemic was also established. These schemes include compensation for State airports (Dublin, Cork and Shannon) of approximately €20 million, in light of COVID-19 impacts in 2020. This funding will provide State airports, including Shannon Airport, with the flexibility to roll out route incentives/charge rebates, in consultation with airlines, with a view to supporting recovery and growth of connectivity. The Department is currently assessing applications for this funding and would hope to be in a position to disburse this compensation in the coming weeks. In order to ensure parity of treatment, funding will be allocated to airports proportionate to the damage caused. In this regard, funding will be allocated proportionately in line with 2019 passenger numbers at the airports.

Throughout the COVID-19 crisis, the Government has made significant funding available to the Irish aviation industry, including Shannon Airport, through a range of business supports. The bulk of the support available is through the TWSS/EWSS wage subsidy schemes which were specifically designed to maintain the link between employers and employees. It is estimated that by end-June 2021, the sector will have received approximately €300 million in such supports.

The Economic Recovery Plan published by Government on 1 June, recognises that additional support may be required to support the aviation sector’s recovery as it opens up.

Finally, any fund administered by Tourism Ireland would be under the remit of the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media.

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