Dáil Éireann Debate, Thursday - 25 April 2024
137. Deputy Martin Kenny asked the Minister for Transport for an update on the investment in the National Aviation Policy which provides support for Cork and Shannon Airports to develop as regional tourism and business gateways as outlined in the National Development Plan; and if he will make a statement on the matter. [18465/24]
View answer138. Deputy Martin Kenny asked the Minister for Transport for an update on investment in the Regional Airports Programme, which provides financial support towards safety and security projects at the smaller regional airports, including Ireland West Airport Knock, Waterford, Donegal and Kerry Airports as outlined in the National Development Plan; and if he will make a statement on the matter. [18466/24]
View answerAviation plays a crucial role in our economy and society. The National Aviation Policy, published in August 2015, established a policy framework for the development of the aviation sector. It was designed to create an environment that would encourage the sector to enhance Ireland's connectivity, foster the growth of aviation enterprise and maximise the contribution of aviation to Ireland's sustainable economic growth and development.
The roles of Cork and Shannon Airports, as key tourism and business gateways for their regions, and particularly with regard to the development of key niche markets, continue to be supported by Government.
Both airports are expected to operate on a commercial basis without recourse to Exchequer funding. However, in light of the impacts of Covid-19 and taking account of the recommendations of the Taskforce for Aviation Recovery, Government provided Shannon and Cork airports with over €28 million in capital and operational supports in 2021 under a COVID-19 Regional State Airports Programme 2021. This funding was in addition to over €5.3 million in emergency Exchequer funding paid in 2021 to support Shannon Airport for a Hold Baggage Screening (HBS) project and an Embankments project.
In relation to the Regional Airports Programme, a new Programme for the period 2021-2025 was published by my Department in 2021. This Programme aligns with the National Strategic Outcome - NSO 6 High-Quality International Connectivity of our National Development Plan. This strategic outcome sets out that investment will continue to support international connectivity and competitiveness, whilst targeting the ‘greening’ of airports.
In line with this, the Regional Airports Programme seeks to optimise conditions for connectivity and regional development, both for the social and economic benefits that can be derived from facilitating access to and from the associated regions. Since 2021, almost €65 million in capital and operational supports have been provided to eligible airports, with a further €13 million available for allocation under the Programme this year. This funding has supported a range of essential safety and security related activities and operations required to maintain airports’ compliance with regulatory requirements in those areas. Projects with a sustainability focus have also been supported, assisting airports meet their carbon reduction targets and build climate resilience.
Eligible airports are those that provide scheduled passenger services and handle fewer than one million annual passengers (on average over the two preceding financial years). The regional airports at Ireland West, Kerry and Donegal are currently eligible for funding under the Programme. In the absence of scheduled passenger services, Waterford Airport has not been eligible since 2016.
In addition, by virtue of their size and passenger numbers, neither Cork nor Shannon had been eligible for funding under the Regional Airports Programme. However, in 2022 both became eligible due to suppressed passenger numbers in 2020 and 2021 as a direct result of the COVID-19 pandemic. While Shannon Airport remained eligible for supports in 2023, neither of these State airports are eligible for supports in 2024.
The Programme also provides for Exchequer funded Public Service Obligation (PSO) air services to isolated areas – those not adequately served by alternative transport services to administrative, business, education, and medical centres. Currently one PSO route, providing twice daily two-way air services, is supported between Donegal and Dublin airports.
This targeted Exchequer funding has supported the strong rebound in passenger traffic witnessed across Irish regional airports, with overall passenger traffic in 2023, 9% above 2019 levels (the last comparable period prior to COVID-19).
To consider how this Programme is delivering on its objectives, primarily in the context of how international connectivity and services to and from the regions can be maintained and enhanced, the Programme provides that a mid-term review be undertaken in 2023. My Department carried out a public consultation last year to inform this review, which was finalised in late December. I am currently engaging with colleagues across Government in reaching a conclusion on this review.
