Oireachtas Joint and Select Committees

Thursday, 12 November 2020

Joint Oireachtas Committee on Transport, Tourism and Sport

Issues Affecting the Aviation Sector: Discussion (Resumed)

Photo of Cathal CroweCathal Crowe (Clare, Fianna Fail) | Oireachtas source

I thank all our guests for appearing before the committee but, in particular, I welcome those from Limerick Chamber. At a committee meeting a number of weeks ago, I proposed we would invite them to present the Copenhagen Economics report, which was launched 13 months ago but whose relevance has been heightened, given the current crisis in the aviation sector. It provides the only credible alternative policy for aviation that I have yet seen. There is perhaps too much on this meeting's agenda and in some ways it is an injustice that the Copenhagen Economics report and the depth of information therein have been confined to such a short speaking slot. I propose, therefore, that we invite those guests back on another occasion to dig deep on this. There is some very concrete material and it has been researched on a pan-European and Middle Eastern basis. There are even some data relating to potential new routes, from Shannon Airport to Dallas and other such locations. I would really like those guests to appear before us again.

Separation has not worked for Shannon Airport. A certain number of passengers coming into Shannon Airport was recommended in the Booz report in order for it to be a sustainable, stand-alone airport but, even in its best years, Shannon Airport did not attain that. On that metric alone, the separation has not worked for Shannon Airport. I do not believe that going back to that old relationship with the DAA would serve Shannon Airport well. Dublin Airport had a predatory view of Shannon Airport and that has continued even more in recent years since the airports have separated. I do not think Shannon Airport would fare well under the wing of the DAA. The model we should consider is something akin to that in Britain since the 1960s, which has been accentuated in recent years, whereby the British Airports Authority was set up to lead and manage centrally the state-owned airports.

In 2018, which was probably one of the last really good years for aviation, the DAA made significant profits and paid a €40 million dividend to the State. If nothing else, and if the State does not overhaul aviation policy, would our guests agree that the €40 million dividend should be ploughed directly back into Shannon Airport, which is separate from the DAA, to keep it going? I refer also to Knock and the other small airports. Should the dividend to the State be ring-fenced and ploughed back into aviation?

Brexit poses a number of challenges and opportunities. On challenges, I would like to hear in particular the views of Dr. Cahill and IALPA. Do they believe that public service obligation routes from Shannon Airport to the UK and continental Europe are now required beyond 1 January, when we will be even more geographically peripheral and our need for connectivity will be all the greater? As for opportunities, do our guests believe that Brexit may present an opportunity for enhanced cargo into and out of Shannon Airport?

We have been told the north runway at Dublin Airport will be complete and probably operational in the second or third quarter of next year. In spite of everything we have said during the meeting and of everything the Copenhagen Economics report laid out in respect of a future for Shannon Airport, will that further increase Dublin Airport's share of the market? Have there been any projections of how the runway will damage and impact the other airports?

A report in today's edition of the Irish Independentquestions antigen testing and how accurate it is. I very much welcomed what happened this week in respect of funding and setting up a testing regime that is now operating at Shannon Airport. Nevertheless, it needs to be a gold standard test to give passengers the confidence to book tickets and fly. Our guests from IALPA might comment on that.

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