Dáil Éireann Debate, Thursday - 17 June 2021
49. Deputy Joe Carey asked the Minister for Transport the status of the ongoing talks with a company (detail supplied) to broker a rescue package; if he will report on his efforts to secure the reinstatement of the Shannon Airport base, strategic routes from Shannon to Heathrow, New York and Boston and commitments in relation to Shannon-Heathrow slots as part of this deal; and if he will make a statement on the matter. [31115/21]
View answerBoth Minister Ryan and I met with the Aer Lingus CEO soon after their base closures announcement, and they did confirm that there is no strategic intent to reduce connectivity at Shannon Airport, but that the restoration of air services would depend on market conditions. It was clear from my discussions that the priority for Aer Lingus, and for all aviation stakeholders, is clarity on plans for re-opening international travel.
On 28 May, the Government set out its plan for the resumption of non-essential international air travel, with effect from 19 July. This plan is built around EU Digital COVID Certificates and other proofs of vaccination, pre-departure PCR testing and mandatory quarantine that will allow international travel to operate safely. An “emergency brake” mechanism will also allow us to respond to the potential emergence of variants of concern. The plan includes a framework for the safe return of air travel from US and other third country routes.
On 1 June, Government launched its Economic Recovery Plan 2021 with the goal of achieving rapid job creation and economic growth after the pandemic. This plan sets out new measures for businesses and affected sectors as the economy reopens, and details for existing emergency pandemic financial supports including the COVID Restrictions Support Scheme (CRSS), Employment Wage Subsidy Scheme (EWSS) and Pandemic Unemployment Payment (PUP), giving certainty to employers, workers, and for those who need it most.
My officials and I have maintained regular contact with key stakeholders throughout this crisis, and Government has put in place a range of supports for businesses, including the aviation sector. These supports include the wage subsidy scheme, waiving of commercial rates, deferral of tax liabilities, the COVID Restrictions Support Scheme, the Credit Guarantee Scheme, and the SBCI Working Capital Scheme. It is estimated that, by the end of June this year, our airlines and airports will have received at least €300 million from several available supports. Liquidity funding is also available through the ISIF Pandemic Stabilisation and Recovery Fund for medium and large enterprises.
While it may take some time for our aviation sector to regain the strong economic position it had at the start of the pandemic, Government has committed to ensuring that there will be no “cliff-edge” to the COVID-19 related business supports that are currently available.
As regards the Heathrow slots, Aer Lingus entered into certain commitments at the time of its acquisition by IAG in 2015 in relation to the operation of its London Heathrow slots. These commitments are, however, subject to certain force majeure provisions, which are defined to include an "epidemic or pandemic". The reduction in Aer Lingus frequencies to London Heathrow is therefore in accordance with these provisions.
