Hildegarde Naughton (Galway West, Fine Gael) | Oireachtas source

I thank the Deputies for raising this very important matter with me. As an island nation, Ireland is particularly dependent, both socially and economically, on air connectivity. Aviation plays a critical role in our economy. More than 140,000 jobs are supported by the air transport sector in Ireland. The air transport industry, including airlines and industry supply chains, is estimated to support a share of Ireland's GDP worth €8.9 billion. Approximately 6.8% of GDP was supported by air transport and foreign tourists arriving by air in 2018. Spending by foreign tourists supports a further €8.7 billion of the country's GDP. Ireland is also a significant global player in the area of aircraft leasing, an industry which contributes a further €541 million to the economy and supports almost 5,000 jobs.

Successive Government policies and the national aviation policy have recognised and supported this contribution. They have pointed in particular to Ireland's reliance on international connectivity to secure its competitive international position. The current policy has been highly successful and aviation in Ireland has seen strong growth in recent years. However, as we all know, the Covid-19 crisis is having a significant impact on the sector. Irish airports and airlines are fully exposed to the dramatic downturn in activity. Operations shrank to a small fraction of the normal level of activity, resulting in significant cash flow problems. Airlines and airports have had to restructure their businesses significantly in response to the crisis, and many are availing of Government supports. The Shannon Group has been severely impacted by Covid-19. I acknowledge and thank the company's management and staff for their commitment to keeping the airport open and keeping passengers and staff safe during this very difficult time.

We can all agree on the importance of Shannon Airport to Ireland and to the mid-west in particular. This is acknowledged in the national aviation policy, which recognises the strategic importance of Shannon to the connectivity of the mid-west and its importance as a gateway to the Wild Atlantic Way. Unfortunately, in the challenging circumstances faced by the Shannon Group, management have had to take difficult decisions to ensure the future viability of the company. I understand the company has been engaging further with employees this week on further measures that must be taken to assist the company's recovery.

I do not underestimate the impact on employees of these changes, which are deemed necessary to enable the Shannon Group to secure the future of the airport so that it will be well placed when the sector recovers from this crisis. Deputies will be aware that in response to Covid-19, the Government has put a broad range of supports in place to help mitigate the effects of the crisis. These include the temporary Covid-19 wage subsidy scheme, of which many companies in the aviation sector, including the Shannon Group, are availing. The Shannon Group has asked for a range of supports from the Government to help mitigate the impact of Covid-19. These are being considered. My Department recently approved €6.1 million of emergency funding to complete the airport's hold baggage screening project. The Department continues to work closely with the Shannon Group to ensure that the company, including Shannon Airport, will be well positioned operationally to contribute to the post-pandemic economic and social recovery.

The impact of Covid-19 on the aviation sector has been severe. The sector will continue to be impacted as long as international air travel is restricted on public health grounds. The Government is acutely aware of the matter and suitable policy and financial responses are being developed. The final report of the aviation recovery task force will be important when finalising proposals, given the expertise and industry insights it will reflect.

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