Dáil Éireann Debate, Thursday - 2 December 2021
15. Deputy Matt Shanahan asked the Minister for Transport if he will address a series of matters (details supplied) in relation to regional aviation support packages; and if he will make a statement on the matter. [59612/21]
View answer16. Deputy Matt Shanahan asked the Minister for Transport the reason the policy to support regional aviation did not extend to Waterford Airport considering it attracts the full costs of serviced runway, emergency standby and air traffic control and air navigation expertise on site and is the base facility supporting the Coastguard Rescue Helicopter 117 service; and if he will make a statement on the matter. [59613/21]
View answerI propose to take Questions Nos. 15 and 16 together.
As the Deputy is aware under the €126m funding package for Aviation announced on 12 October, funding of €90m will be allocated in 2021, subject to State aid approval, under the Covid-19 Supplementary Support Scheme and €36m will be allocated in 2022 under the Regional Airports Programme 2021-2025.
This €90m in funding builds on the €26m in funding provided earlier this year under State Aid approved Schemes. The only airports that are eligible for supports are airports that deliver international connectivity. The criteria applied are as set out in the EU Commission Decision SA59709 as follows:
ec.europa.eu/competition/state_aid/cases1/202118/290271_2270935_109_2.pdf.
As outlined in the Decision the objective of Measure 1 is to compensate the damage suffered by the Irish airport operators due to the imposition of the general advisory and other containment measures linked to the COVID-19 outbreak in Ireland and other countries under Article 107(2)(b) of the Treaty on the Functioning of the European Union, during the period from 1 April to 30 June 2020.
The objective of Measure 2 and Measure 3 is to ensure air connectivity and broadly support the general economy and development in Ireland by providing support to airport operators.
My Department is currently engaging with the Commission to amend this scheme to reflect the increase in budget of an additional €90m.
In relation to funding of €36m in 2022 under the Regional Airports Programme 2021-2025, this funding remains targeted at airports that operate scheduled services and have annual passenger numbers of fewer than 1 million (during the two financial years preceding the year in which aid is granted). Scheduled services must facilitate international connectivity, either directly or via another national hub airport such as Dublin.
Waterford Airport had been eligible for funding under the last Regional Airports Programme (2015 to 2019). However, following a continued decline in demand for services over successive years from 2008, Waterford Airport became ineligible for funding when all remaining scheduled flights ceased at the airport in June 2016.
Given the above, without passenger flights or plans to develop passenger flights, Waterford Airport’s operations failed to meet the connectivity objective associated with Government policy on regional airports.
As the Deputy is aware, Waterford Airport has faced serious financial challenges since scheduled flights ceased at the airport. In order to avoid liquidation, the airport sought subvention from the Department of Transport in December 2017.
The Government at that time committed to providing support to Waterford Airport, on an exceptional basis, in order to allow time for the consideration of future options at the airport, including a proposal to expand its runway.
While some operational payments to Waterford airport were made on an exceptional basis between 2018 and 2020 in anticipation of the return of scheduled services, the radically changed outlook for the return of such services means that such payments cannot be continued.
Waterford Airport have been advised that there is no policy basis on which the State can fund general aviation. (Other airports in a similar position are not eligible for funding under the Regional Airports Programme.)
