Eamon Ryan (Dublin Bay South, Green Party) | Oireachtas source

As has been articulated by the Deputies, Aer Lingus unfortunately announced several cost-cutting measures on Tuesday, 18 May. These included the temporary closure of its base in Cork Airport from September to November this year and the permanent closure of the cabin crew base in Shannon Airport. The Minister of State, Deputy Naughton, and I met the CEO of Aer Lingus yesterday. Among other things, we discussed yesterday's announcement, which is deeply regrettable. I acknowledge the difficult and unprecedented challenges being faced by Aer Lingus and its staff and the cost pressures leading to the ultimate decision to restructure the company.

The continued international crisis in aviation is increasing the pressure on all firms in the industry. All airlines have variously issued capital, raised further borrowing, drawn on Government supports or taken measures to reduce their cost bases or both. Major European airlines, such as Lufthansa, Air France, KLM, and IAG, have announced many thousands of job cuts. I assure Aer Lingus and the wider aviation sector that the Government is fully committed to supporting the industry and we acknowledge the importance of providing clarity on the extent and duration of the employment supports before the end of June. We recognise as well that the critical issue for the industry is a roadmap for the restoration of international travel. The Government intends to set out a pathway for the gradual reopening of international travel at its meeting next week. I hope there will be an extensive Dáil debate and statements on the issue next Tuesday, which will enable Deputies to set out their thinking in that regard.

We also met yesterday with the CEO of Shannon Group and the managing director of Cork Airport to brief them on the situation and to reiterate Government support for the airports and their important role in regional development. Similar engagements occurred between the Minister of State, Deputy Naughton, and the unions and employer representative groups in her capacity as chair of the Labour Employer Economic Forum, LEEF, and its aviation subgroup, at its meeting this week. The Government is acutely aware of the devastating impact Covid-19 restrictions are having on the aviation sector nationally and across the world. We are committed to ensuring that the aviation sector will be in a position to rebound quickly when the public health situation allows.

Government supports continue to be used to aid companies and their staff throughout this crisis. Throughout the pandemic, the Government has made significant funding available to Aer Lingus and other aviation enterprises through a range of business supports. It is estimated that by the end of June 2021, the sector will have received approximately €300 million in such supports. The bulk of those supports was in the form of the temporary wage subsidy scheme, TWSS, and the employment wage subsidy scheme, EWSS, programmes, which were specifically designed to maintain the link between employers and employees. An additional €32.1 million is also being provided in respect of support for Cork and Shannon airports this year. My Department is also assessing applications for funding to the State airports under the auspices of the €20 million Covid-19 supplementary support scheme, and the Minister of State expects to be in a position to provide funding to Cork and Shannon airports under this scheme shortly.

All our thoughts today are with those impacted by the announcement by Aer Lingus yesterday and with all those in the aviation industry who continue to be impacted by the biggest crisis this sector has ever faced. I assure workers and all those involved in the aviation industry that the Government will continue to support the industry and to review the supports which may be required in the months to come. While we are not yet able to permit the restoration of international travel, work is under way to ensure that we are prepared for exactly that situation. Until then, the Government will continue to provide supports to the aviation sector, as we do to all sectors of the economy. Aviation has been particularly badly hit. It, along with tourism and hospitality, are the areas which deserve our greatest help, support and attention and those elements will be provided in every way we can.

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