Thomas Pringle (Donegal, Independent)
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Stobart Air ceased operating over the weekend and it was the operator of the public service obligation, PSO, routes from Dublin to Kerry and Donegal for Aer Lingus. Aer Lingus has stepped in to ensure the international routes are filled and we have now heard an Estonian airline has taken the Dublin to Kerry route but has left Donegal behind. We must ask how the Department was not aware of a potential problem in the first place. In addition, many people are now left without a service, and many of those were using Donegal airport to access connecting flights to get to work in England, for example. The most difficult situations of all are perhaps those of the cancer patients who depend on these flights to get their treatment in Dublin. The local cancer care committee had eight patients booked in for flights this week. Members of the committee are now going to travel with patients to ensure they get their treatments and they are not left alone. If only our Government had that kind of commitment to our citizens, we would not have been in this kind of situation in the first place. However, it is vital this situation is addressed now and a new operator is found for Donegal Airport.

Pearse Doherty (Donegal, Sinn Fein)
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I spoke to the Minister for Transport, Deputy Ryan, on Saturday as the news emerged of the liquidation of Stobart Air. I pleaded with him to drop the idea of going for the tender process and to embark instead upon the emergency procurement process. I am glad to say that has been announced this morning, and it could mean we can have these services up and running within what the Department estimates will be several weeks, by early next month. I welcome that our concerns, which we put in writing, have been taken on board and that this approach has been adopted.

However, I implore the Minister of State to recognise the importance of every day which passes. As Deputy Pringle said, this service is of great importance and especially for cancer patients. I spoke to Mary Coyle of Ionad Naomh Pádraig who operates that community service. Every cancer patient leaving west Donegal who cannot take a flight faces a nine-hour round trip. Some of those people simply cannot make the journey by car. They are not doing it and appointments are being cancelled. Therefore, it is very important the Department fast-tracks this process. The middle of July is too late. I want to see this service back up and running in a few weeks and I implore the Department to bring this about.

Holly Cairns (Cork South West, Social Democrats)
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The aviation industry has been one of the hardest hit sectors and that was unavoidable. However, staff and unions have been warning that jobs would be lost without a proper plan and appropriate supports. The closure of Stobart Air brings this reality home and highlights the vulnerability of our airports. In the past year, Cork and Shannon regional airports have been hit with losses. Job losses in airports are being disproportionately felt by precarious workers such as cabin crew, which is also a disproportionately female workforce. We saw the closure of the cabin crew base in Shannon and a temporary lay-off of staff in Cork has also been announced. To add insult to injury, staff are also facing a 20% pay cut and the removal of sick pay. Small employers in west Cork and everywhere are going above and beyond in their efforts to retain their staff with the employment wage subsidy scheme, EWSS. Why is an international airline not doing the same? How will the Minister of State respond to ensure the protection of these jobs, and especially the more precarious ones, such as cabin crew?

Hildegarde Naughton (Galway West, Fine Gael)
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I am delighted to have the opportunity to update the House on what the Government is doing regarding the sudden announcement by Stobart Air that it was ceasing operations. I refer to the impact of this announcement on connectivity to Kerry and Donegal, Government support for the aviation sector and affected employees, and the current crisis in the aviation industry and its impact on the mid-west.

As Deputies will be aware, Stobart Air contacted the Department in the early hours of Saturday morning to advise that it was terminating the franchise agreement with Aer Lingus and its wet lease agreement with British Airways, BA, with immediate effect. This resulted in all Aer Lingus regional flights to the United Kingdom operated by Stobart Air also ceasing with immediate effect. Regrettably, Stobart Air's plans to secure a new buyer failed over the weekend and this action resulted in Stobart Air commencing a process of voluntary liquidation. The announcement is deeply regrettable in respect of the 480 Stobart Air workers directly impacted by this decision.

The restoration of regional connectivity is of critical importance to the Government. The market has already moved to fill some of the lost routes, with Aer Lingus and BA CityFlyer now operating temporary replacement services which will cover most of the affected routes operating out of Dublin and Belfast City airports. Together with rerouting options, this will allow passengers impacted by the situation to return home. Regarding the PSO air services from Dublin to Donegal and Kerry, work is under way in my Department to launch an emergency procurement process to try to restore air services on these vital regional routes as soon as possible. My Department plans to issue a request for quotes directly to airlines in the coming days in accordance with applicable EU rules on air service public service obligations. It is anticipated the emergency procurement process will be completed by early July with a view to services being recommenced by the new operator or operators as soon as possible thereafter. The new contract will be subject to a maximum term of seven months and will operate according to EU law.

To mitigate any further disruption to these services, my Department will also launch a procurement process, for a maximum of four years, for the continued provision of the services after the temporary contract has expired. The Minister, Deputy Ryan, and I will continue to engage closely with aviation stakeholders, including those in Kerry and Donegal airports, to keep them informed of plans in this regard. I am happy to advise that several airlines have been in contact to indicate their interest in operating these routes.

The Government is aware of the ongoing impact of the pandemic on the aviation sector and it has put in place a range of supports for businesses, including the aviation sector. These supports include the wage subsidy scheme, the waiving of commercial rates, deferral of tax liabilities and the Covid restrictions support scheme, CRSS. Liquidity funding is also available through the Ireland Strategic Investment Fund, ISIF, pandemic stabilisation and recovery fund for medium and large enterprises, and this is being availed of. The Government also allocated funding of €80 million for aviation-specific support in 2021 in recognition of the impact of Covid-19 on our smallest airports in Donegal, Kerry and Knock. In addition to the €21 million in funding under the regional airports programme, a further allocation of up to €6 million to regional airports under a state aid compliant scheme will also be available in 2021. Applications for funding under this scheme are being assessed by my Department and I hope to be able to allocate funding in the coming weeks.

In acknowledgement of the severe impacts on our two State regional airports and in recognition of the importance of these airports to the south west and mid-west regions they serve, an unprecedented €32 million is also being provided in support to Cork and Shannon airports this year. Additionally, my Department is assessing applications for funding of these airports and Dublin Airport under a €20 million Covid-19 supplementary support scheme, and I expect to be able to provide funding under this scheme shortly. This support will allow the airports the flexibility to provide route incentives and airport charge rebates to stimulate recovery and lost connectivity.

Thomas Pringle (Donegal, Independent)
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I thank the Minister of State for her response. It is interesting that she noted that "the market has already moved to fill some of the lost routes". If that is what we are depending on, then we are in bother straight away. I also note the Minister of State said a move had been made to make the PSO service happen. That is good, and I hope it will happen in weeks rather than anything else. There is some foresight in seeking to run the tender for the next four years in tandem. I hope that happens because, in reality, that is what is going to make the difference. The last thing we want is to be back here in seven months' time facing another crisis. Therefore, I wish that process will continue.

Pearse Doherty (Donegal, Sinn Fein)
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I reiterate that I welcome going with an emergency process that I discussed with the Minister on Saturday. I also discussed with him the fact other airlines were interested in this lucrative PSO deal.

I am pressing the Government tonight to see if this process can be shortened in any way. The Minister for Transport said that the process would begin next week but the Minister of State has just said that it will begin in the next "number of days". I must emphasise again that every single day counts, with patients being able to travel to Dublin by air for cancer treatment instead of having to make a nine-hour trip by road. Can we shorten this by any amount of days so that we can get it up and running quicker than envisaged in the written response, which refers to early July?

Holly Cairns (Cork South West, Social Democrats)
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There will be a temporary lay-off of cabin crew in Cork due to runway works but staff have also been warned that their employment depends on "operational capability and business need". Similar letters were sent to Shannon cabin crew before the permanent closure of the base. The employment wage subsidy scheme is much more appropriate than pushing people onto social welfare. It is worth noting that employees in the same sector such as pilots and engineers are not being temporarily laid off, only those in the more low-paid categories. How is the Government going to address this specific issue? Where is the plan and the supports for employees in a sector that was bound to be disproportionately affected by the pandemic?

Hildegarde Naughton (Galway West, Fine Gael)
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In response to Deputy Cairn's concerns regarding employees, I chair a subgroup of the Labour Employer Economic Forum comprising representatives of employers and employees within aviation, which is examining the further needs of the sector. There are also references in the national economic recovery plan to additional supports for the aviation sector, if required. All of this is under consideration. I am aware of the stresses and concerns for employees in the sector but the Government has acted quickly. We have been watching the situation closely. What we wanted to do straightaway when Covid struck was to protect our airports and infrastructure to make sure they were in a position to rebound through this.

On the PSO and expediting that process, we engaged on that over the weekend. Officials have been engaging with the European Commission on that process. I assure Deputies that the process will happen as fast as possible. This week the Department will write directly to airlines. They will need a week to reply but every effort is being made to expedite the process. I am hopeful that by the time we open up international travel on 19 July, we will have those routes in place, all going well.

On the issue of the market responding, it is a positive step that the market responds and is a good sign for Ireland. We should look at that positively. The fact that the market stepped in and that there are expressions of interest for the PSO routes is positive. The Deputies can be assured that regional connectivity and restoring international travel in a safe way are priorities for Government.