Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

The Department of Transport, Tourism and Sport has been informed by Waterford Airport that Flybe will be withdrawing its services with effect from the end of March 2015. Flybe is the only commercial operator currently using the airport. It operates services on the Manchester and Birmingham routes. It is understood that the withdrawal of Flybe services is not limited to Waterford Airport, as at least four other European airports are similarly affected. This withdrawal comes at a particularly unfortunate time for Waterford Airport.

The load factors on the two Flybe routes have seen a significant improvement last year with passenger numbers up almost 18% compared to 2013. Therefore, the news of the withdrawal of these services was most unexpected for the airport.

Any plans to address the reduction of services or to introduce new routes are entirely commercial in nature and are a matter for the board and management at the airport. Therefore, I do not have a role in such matters. However, I understand that the airport is moving to identify a replacement carrier to continue the routes after March next year. I am aware of the challenges facing Waterford Airport arising from these developments in addition to Aer Arann, now Stobart Air, withdrawing its London-Luton route in 2013.

In recognition of Waterford Airport's contribution to balanced regional development, the Exchequer has provided support to the airport under the Regional Airports Programme 2011-2014, through the CAPEX and OPEX schemes. The OPEX scheme which deals with operating expenditure provides compensation for subventible losses; in other words, the costs incurred in providing core airport services in so far as these costs cannot be fully met by prudent commercial management. Waterford Airport received more than €1 million in funding under this scheme in 2014. This brings the total OPEX funding granted to the airport since 2006 under this programme and the previous programme to €11.3 million.

The CAPEX scheme provides for funding for safety and security projects at the regional airports to ensure that our airports comply with the necessary domestic and international regulations. In 2014 alone, more than €500,000 was paid to the airport for safety and security related projects, bringing the total capital funding paid to Waterford since 2006 under this programme and the previous programme to €6.4 million.

In November 2011 funds were allocated under the CAPEX scheme for the construction of a runway end safety area, RESA, which involves the purchase of land at the southern end of the airport to facilitate this work. This work is regarded as essential for safety purposes by the Irish Aviation Authority, IAA, to ensure compliance with safety regulations. However, CPO process for the land purchase was referred for arbitration and the hearing has now been delayed until April 2015. The exact amount to be paid for the lands will be determined through the arbitration process.

I should point out that the CAPEX scheme does not cover developmental projects at the airport, such as the proposed runway expansion. I understand that the airport board is committed to raising the necessary funds with assistance from local businesses and local authorities in the region for that project. The loss of Flybe's services, along with the need to replace the key London-Luton route means that the airport is facing a very challenging future. I urge all concerned to work together to arrive at a successful outcome for the airport which in turn will benefit the business and tourism sectors in the region.