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

I thank all the Deputies for raising this important issue. I am acutely aware that, as an island nation, Ireland is particularly dependent on air connectivity both socially and economically, and aviation plays a critical role in our economy. However, due to coronavirus, global civil aviation is currently experiencing its most challenging crisis, more severe than what happened after the attacks on 11 September 2001 or the global financial crash, with many analysts predicting that it will take several years for the sector to return to 2019 levels. Irish aviation stakeholders are fully exposed to the resulting dramatic downturn in activity and it is clear that should Covid-19's impact on aviation be prolonged, this will affect their long-term financial health. I have met all key aviation stakeholders and officials have ongoing engagement with airports and airlines.

I am particularly concerned by a recent announcement by Ryanair of the possible closure of its bases at Shannon and Cork, and also media reports that Aer Lingus might relocate aircraft from its base at Shannon. These are commercial decisions of the companies concerned and it should be noted that route schedules for the winter season at Shannon and Cork have not yet been finalised.

In order to assist businesses and further protect employment, the Government has put in place a comprehensive suite of generalised supports for companies of all sizes, including those in the aviation sector, which includes a wage subsidy scheme, grants, low-cost loans, a waiver of commercial rates and deferred tax liabilities. Liquidity funding is also available through the Ireland Strategic Investment Fund, ISIF, pandemic stabilisation and recovery fund. The existing support mechanisms available for the aviation sector will be reviewed in the context of the Government's plans for international travel.

In line with priorities for regional development, the Government is also maintaining subvention for air services to the regions. Approximately €2.5 million in Exchequer funding is being provided for capital investment in the areas of safety and security for Donegal, Ireland West and Kerry airports. A new regional airports programme for 2020 to 2024 is being prepared, incorporating a number of support schemes for our regional airports.

Shannon Airport has been provided with an emergency grant of over €6 million to complete its hold baggage screening project, a safety and security requirement under EU regulations.

Legislation has been introduced to provide a State guarantee for refund credit notes issued to consumers of Irish licensed travel agents and tour operators who have had to cancel holiday bookings. This guarantee ensures that where a credit note is accepted by a consumer, its monetary value is secured until it is used in the future.

These supports notwithstanding, our airlines and other aviation stakeholders have had to make a number of difficult decisions in order to best ensure their long-term commercial viability. These decisions have focused on areas such as redundancies, laying off staff and the potential closure of operational bases, all in response to the significant reduction in their operations. Industry has also introduced shorter working schemes, which have reduced both hours worked and levels of pay received by their staff.

The aviation recovery task force set out recommendations for consideration by Ministers and the Government on what needs to be done to assist the Irish aviation sector to recover from the Covid-19 crisis. The task force report contains a number of recommendations on how to support Irish aviation, which has been badly affected by the almost complete shutdown of international air travel. The recommendations include measures to sustain the industry for as long as travel restrictions are in place and also measures to help stimulate a return to growth, when the time is right.

The Government has already implemented several recommendations, including the publication of safe air travel protocols. We have progressed a European slot rule waiver for airlines in consultation with the European Commission. The wage subsidy scheme was extended to April 2021.

The other recommendations, including further targeted financial supports to help reinstate connectivity, are being examined by Government. Work is required to develop these recommendations into effective interventions and that work is under way. This will feed into the Government's further plans to aid the broader economic recovery, including in the aviation sector. I thank the Leas-Cheann Comhairle. I just wanted to get my reply in.

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