Dáil Éireann Debate, Wednesday - 29 May 2024
49. Deputy Matt Shanahan asked the Minister for Transport the key policy achievements realised and new initiatives taken by his Department to date and during 2024 in relation to regional aviation; and if he will make a statement on the matter. [24240/24]
View answerIreland’s National Aviation Policy (“NAP”) published in August 2015, established a policy framework for the development of the aviation sector. With regard to regional airports, the NAP was designed to create an environment that would encourage the sector to enhance Ireland's connectivity and to maximise the contribution of aviation to Ireland's sustainable economic growth and development.
In line with the action points under the NAP, regional airports are supported under a Regional Airports Programme. The current Programme for the period 2021-2025 was published by my Department in 2021. Since 2021, Exchequer funding totalling over €78 million has been allocated under this Programme.
This Programme continues to support Ireland’s smallest airports that provide connectivity and handle fewer than one million passengers per annum. In addition to targeting funding at safety and security projects and activities, the scope of this new Programme was expanded to support projects with a sustainability focus encouraging airports to reduce emissions and build climate resilience.
The NAP also supports Public Service Obligation (PSO) air services. A PSO air service between Donegal and Dublin is supported under the Regional Airports Programme providing vital connectivity to the people and businesses in the North-West region. Services facilitate same day return trips from Donegal, and further international connectivity from Dublin Airport. The current contract, awarded by my Department to Emerald Airlines, came into effect on 26 February 2022 and will run for a three-year period, with a provision to extend for a further one year. As well as supporting Government’s commitment to balanced regional development, these services have supported growth of the economy and tourism in the region.
By virtue of their size and passenger numbers, neither Cork nor Shannon regional State airports had been eligible for funding under the Regional Airports Programme. However, in light of the impacts of COVID-19 and taking account of the recommendations of the Taskforce for Aviation Recovery, my Department allocated over €28 million to Cork and Shannon airports under a one-year COVID-19 Regional State Airports Programme in 2021. Due to suppressed passenger numbers in 2020 and 2021, both airports later became eligible for supports under the Regional Airports Programme in 2022, with Shannon Airport remaining eligible in 2023 also. An additional €6.8 million in emergency supports were also approved by Government and provided to Shannon Airport to complete a Hold Baggage Screening project, commenced during the pandemic, and to repair the Shannon embankments following storm damage during winter 2013/2014.
In addition, in recognition of the very difficult circumstances faced by all Irish airports during COVID-19, a further unprecedented €19 million was allocated to regional airports in 2021 under an EU State Aid approved COVID Supplementary Support Scheme for Irish Airports. This funding compensated the smaller regional airports at Donegal, Kerry and Ireland West for the damage caused to them by COVID-19. The funding allocated to our regional State airports at Shannon and Cork provided them with the flexibility to roll out route incentives and charge rebates, in consultation with airlines.
I am pleased to say that Ireland has established good connectivity via our regional airports with the UK, Europe and America. The targeted Exchequer funding to this sector has supported this connectivity, with overall passenger traffic across Irish regional airports in 2023 9% above 2019 levels (the last comparable period prior to COVID-19). I am also encouraged to see the strong growth experienced to date this year, with passenger traffic to end April 10% higher when compared to the same period last year.
That said, to consider how Exchequer funding to this sector 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, a mid-term review of the Regional Airports Programme was undertaken in 2023. My Department carried out a public consultation last year to inform this review, which was finalised in late December.
While the primary focus of this review is on the performance of the Programme to date, recommendations and proposed actions on foot of this review may contribute to the development of policy on future appropriate and cost-effective support measures for regional airports in Ireland, including the development of any future Programme.
I am currently engaging with colleagues across Government in reaching a conclusion on this review.
