Vol. 424 No. 6
12 Mr. McCormack asked the Minister for Tourism, Transport and Communications if she has received any applications from any UK or Irish airline to establish a regional air service between the United Kingdom and this State; and the steps, if any, which she has taken to encourage a new airline to develop its services between the UK and Irish regional airports.
24 Mr. Lowry asked the Minister for Tourism, Transport and Communications the proposals, if any, she has to assist regional airports on the matter of marketing initiatives to both airlines and air passengers.
31 Mr. McCormack asked the Minister for Tourism, Transport and Communications the steps, if any, she proposes to take to preserve vital regional air links between the United Kingdom and regional airports of Galway, Waterford and Kerry; and if the Government is committed to such a service.
41 Mr. Deenihan asked the Minister for Tourism, Transport and Communications her views on the matter of airlinks between the United Kingdom and regional airports in the State, with particular reference to Kerry Airport; and the proposals, if any, she has in this regard.
I intend taking Questions Nos. 12, 24, 31 and 41 together.
The six regional airports, which are all privately owned, have each submitted to my Department plans to upgrade infrastructures and facilities at the airports and to strengthen the economies of the regions serviced by these airports.
The Government regard the network of regional airports in the State as being of fundamental importance in meeting the tourism and transport needs of our most peripheral regions and, accordingly, a major capital investment programme for the development of regional airports was announced in 1991, coupled with investment programmes for tourism, services and industry.
The regional airports are all relatively recent in origin. Many of the start-up services at the airports have been badly hit by international recession, particularly the recession in the UK, to and from which most services operate. In addition, low fares on the Dublin/ London route have attracted traffic from regional airports.
I have already voiced my opinion in this House that the fares policies on the Dublin-London route are suicidal in the long term and I have asked the companies involved to address this issue. The regional airports have also expressed their concerns to me and my predecessors in this regard. In response, a special marketing fund was set up in March 1991 under the operational programme for tourism for the marketing of air services to and from the regional airports. The fund is administered by Bord Fáilte.
Up to £500,000 in European Regional Development Fund aid is available to match expenditure by airports and airlines for promotion and marketing purposes. I am disappointed that take-up on this assistance has been negligible to date. In September 1992, I sought the approval of the EC Commission for the use of funds under the operational programme on peripherality for capital grants to the airport companies to strengthen their balance sheets or for subsidies to cover operational losses. The EC Commission again refused my application on the grounds that European Regional Development Fund funds could not be used for such purposes.
In October 1992, I sought increased funds for the purpose of promoting regional airport services. This was also rejected principally on the grounds that a fund for marketing already existed in the operational programme for tourism.
I am currently trying to assess whether there is any source of funding to help tide the regional airports over their current problems. I am, however, very anxious that the current marketing fund be drawn down in full so that the regional airports will be in a position to take advantage of renewed traffic growth when this occurs. The regional airports are part of the economic infrastructure of the regions which they serve and bring important benefits to the regions, particularly by providing quick access points for tourists. In view of this, I hope that local business and commercial interests in the regions will support the regional airport companies in their present difficulties and ensure that the full marketing funds are drawn down.
I hope the Deputies will accept that these measures reflect my commitment, and the Government's commitment, to the maintenance and development of the regional airports. However, we must recognise that in the first instance, the development of traffic is a matter for the airports, while the operation of air services to and from the regional airports is a matter for the air carriers concerned having regard to the economic viability of particular routes. While I will give every encouragement I can, I have no powers to compel carriers to continue to operate particular services or to introduce new services.
In the light of Ryanair's recent decision to discontinue scheduled services from Galway, Waterford and Kerry to London (Stansted), I made it widely known that I was anxious to see new operators replace them. I received a proposal from a new Irish airline, Airbridge Ireland Ltd., who are seeking to commence operations from Waterford, Galway and Kerry to Luton and London Stansted. I am pleased to inform the House that I have given my approval, in principle, for this proposal, subject to the operator meeting my Department's financial, technical and operational requirements. I have also given Aer Arann approval to operate a new scheduled service between Galway and London Stansted.
I understand that a number of UK airlines may be looking at operating services to the regional airports. The licensing of a UK airline to operate any such services would be a matter in the first instance for the UK authorities. However, I have let it be known that I would welcome such services and automatically license any such operator.
I thank the Minister for her extensive reply. However, I should like to establish what she intends to do about the problem. Does she have a policy to preserve the vital links between regional airports, such as Galway and London?
I dealt comprehensively in my initial reply with the supplementary questions which Deputy McCormack asked. However, for his further clarification, there is a sum of £500,000 in the promotion marketing fund which is available but it needs to be backed by commercial and financial support in all regions to keep the airports in operation. That would involve, for instance, pointing out opportunities to airlines and bringing to the notice of potential airline operators the facilites available at the various airports, engaging in market research, including profiles of users of the airport and marketing services to customers such as tour operators, travel agents and local businesses. I want to see the available sum used in full but it needs to be backed up and supported by the local business interests. I have no doubt that the airport with which Deputy McCormack and I are most familiar — the regional airport in Galway — will, when one looks at the tremendous support there has been already from the commercial business interests in the city, attract the same level of support in helping to facilitate the airport company to use at least some of the money available in the marketing fund.
I put it to the Minister that the marketing fund upon which she places such emphasis is seriously flawed without a marketing body. Will the Minister take steps to set up an overall marketing body that will distribute the marketing fund? Will the Minister also confirm that the two airline policy is now in tatters and that the future of Ryanair is fundamental to the continued operation of regional airports? Will the Minister also give the House her views on whether she regards the number of regional airports at present in operation in the State as sufficient? Will the Minister outline her policies on the need for extra regional airports if that is the case.
To answer Deputy Flanagan's first question, we already have an overall marketing body, as I indicated in my first response, which distributes the marketing development fund. What I am now looking for is that the local regional airports, which are all private companies over which I have no control, would draw down from the marketing development fund. They can do that by getting the support of local business and commercial interests, which many of them have done.
In answer to the second question, I am happy that we have a reasonable spread of regional airports. We should now concentrate on establishing them firmly, encouraging them to draw down the funds for marketing the services that are available at the airports to carriers, passengers, tour operators and travel agents. The level of support that each of the regional airports has received from the Government and the European Community is an indication of the high value we place on the establishment, direction and infrastructure that exists in the regional airports.
