Oireachtas Joint and Select Committees

Wednesday, 5 December 2012

Joint Oireachtas Committee on Transport and Communications

Ireland West Airport Knock: Discussion

10:45 am

Mr. Joe Gilmore:

I will be brief. I will also address a few of the other questions asked by members. We estimate that we picked up approximately 25,000 additional passengers as a result of the termination of services at Galway Airport.

Deputy Naughten asked why the Government had not carried out a competition assessment of the impact of proceeding with the separation of Shannon Airport. We do not know. One would need to ask the Minister directly. We can only surmise that other pressures were being applied to progress the Shannon issue. While we understand why it was done, we disagree with it. The report commissioned by the Government advised against it, yet it is the result.

We were asked whether the airports could co-exist. The answer is "Yes", but we compete. As commercial entities, we compete across all areas. Our catchment areas overlap across one third of the region, particularly in County Galway. We compete for non-commercial airline business. The Chairman mentioned cargo, but other business includes the maintenance, repair and overhaul of aircraft. The airport started a number projects in this regard recently and we are starting to grow a small number of jobs, but we are competing with Shannon. All airports compete, and finding a way to work with Shannon in a "co-opetition", if I may call it that, would be difficult. However, we are open to discussion.

As the chairman of the airport pointed out, we engaged in a process three years ago. A team of six Shannon Development executives were at our airport for approximately eight months and went through all of our numbers and financials. The plan that was drafted was produced by one of the most professional development agencies in the State. It is an expert in developing aviation parks at airports. The plan outlines the blueprint for the 500 jobs and the incentives and structures required. Unfortunately, that plan has not gained any traction to date.

Deputy Calleary asked about the niches into which we will grow. Obviously, one is tourism. This year, we have embarked on an access from Europe project that has attracted approximately 16,000 visitors to the region. Of those, one in every two is a first-time visitor to the west. If these visitors spend between €500 and €1,000, we estimate an overall additional spend of €10 million to €12 million in the region. First-time visitors come to the region because of direct, low cost access. They stay within a one hour's trip of where they visit. Without access, they would not reach the west. They would fly to the east coast, do day bus trips to the Cliffs of Moher and spend no money on the west coast.

We have examined the issue of cargo, but Shannon and Dublin are major hubs in that regard and cater well for the country. Cargo also requires an intensive level of infrastructure to be built around the airport. It is not an area on which we would focus, given the issue of the industrial base. Tourism, leisure and aviation-related businesses are our focuses. We have a great deal of space, some 300 acres of development land, that is ripe for investment and can create hundreds of jobs.

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