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

I thank all the Senators who contributed to the debate. I share their concerns about the devastating impact of this global pandemic on the aviation sector and share their deep regret regarding the failure of Stobart Air and the closure of the Aer Lingus base at Shannon Airport. I am acutely aware of all the issues raised and have met with all key stakeholders on several occasions since the start of the pandemic. I am very aware of the problems facing the sector. I reiterate that the Government is committed to reopening international travel and will continue to provide supports as necessary. The number one ask in all of my engagements with airlines, airports and other stakeholders in the sector has been the reopening of international travel and this is what the Government has clearly outlined. On 28 May, we announced the roadmap relating to the aviation sector, which gives the sector certainty. That was the ask if we are looking at rebuilding the sector and ensuring that we protect as many jobs as possible. In the context of supports for the sector, we have given nearly €500 million.

I also acknowledge the devastating impact of the pandemic on the staff of our airlines in the context of job losses. Almost all aviation workers and companies continue to be impacted by the most sustained and deepest period of suppression this sector has ever faced. Job losses in their thousands have, unfortunately, been a feature of other European airlines and further job losses are likely as the industry restructures in response to Covid-19. These job losses have arisen despite the provision of substantial state supports across Europe and are indicative of the scale of the crisis in the aviation sector globally. The Government is fully aware of the extent and seriousness of the pandemic in the context of aviation.

A number of Senators alluded to certain supports. Taking all of the supports for businesses, including the aviation sector, into account, it is estimated that more than €500 million will have been availed of by the sector by the end of this year. A recent report from the Central Bank on Covid-19 and the public finances outlined that the fiscal support package introduced here was large, with the increase in primary Government spending the second highest in the euro area in the first three quarters of last year. The report found that the fiscal measures introduced have mitigated the impact of the pandemic on households, firms and the broader economy. The purpose of these horizontal financial supports was to mitigate the impact of the pandemic on the broader economy. The Government is confident that this strategy will facilitate a speedy recovery of all sectors, including aviation, as soon as restrictions are lifted.

The Government's economic recovery plan was published on 1 June. Employers in the aviation sector can rest assured that there will be no cliff edge in the horizontal State supports that have been available since the beginning of the pandemic. This was clearly stated during the announcement relating to the recovery plan. The Government will keep under review the need for any additional supports to the sector, if required. The economic recovery plan explicitly references this and recognises that additional supports may be required to support the aviation sector's recovery as it opens up. Additional funding might also be necessary for our regional State airports, namely, Cork and Shannon. They will also be considered in the context of the Estimates process this year regarding budget 2022.

Many Senators raised the importance of regional connectivity. I assure them that the Government is wholly committed to supporting the regions and regional connectivity. This is why we moved quickly to seek to reinstate the lost services to Donegal and Kerry and committed to renewing the public service obligation services on these routes under a new contract for up to a further four years. The funding made available to these airports in 2021 is a clear indication of the importance Government attaches to their being well positioned to weather the current crisis and for recovery and growth. It is worth noting that the capital funding of €900,000 to Donegal Airport, €2.2 million to Knock airport and €1.7 million Kerry Airport, which I announced on 19 April under the regional airports programme, represented funding of 100% of all eligible projects submitted by the airports this year. In addition, I have asked airports to give further consideration to projects with a sustainability focus, which would help expedite the airport's efforts to reduce emissions in line with the goal of moving towards carbon neutrality. These additional projects are being evaluated by my Department.

Regarding the mid-west region, I am fully aware of the devastating impact of Covid on Shannon Airport. Strategic routes from the airport to London Heathrow, European hub airports and the US are vital for the economic well-being of the region. Prior to the pandemic, Shannon Group was delivering on its commercial mandate, improving profitability and recording strong growth in its commercial property company. While the impact of Covid has left Shannon Group in a very vulnerable position, the general Covid-related supports put in place by Government and the specific supports targeted at Shannon Airport, which total some €30 million in the past year, should serve to secure the position of the group and aid its recovery. In a positive development, I can advise Senators that Ryanair resumed scheduled air services in Shannon on 1 June. Flights operating include those to the UK, Poland, Lithuania and Spain. Shannon Airport has also advised me that Ryanair services from the airport will increase from July. Regarding the restoration of other routes and the introduction of new air services, I understand that the Shannon to London Heathrow route operated by Aer Lingus is expected to be back in September. I also understand that Aer Lingus has indicated its intent to come back on transatlantic routes and that Shannon Airport is working hard to get those routes back.Again, I reassure Senators of my commitment and that of Government to continue to work with all stakeholders in the aviation industry. It is a most challenging time for that industry, not only in Ireland but globally. Government is ensuring that our infrastructure and airports, through funding and supporting our airports, are in a very strong position to be able to rebound as we open up international travel as we committed to on 28 May. As Senators have all alluded to, the date for that opening up is 19 July. Government is working extremely hard in preparing for that and, again, the number one ask from airlines and airports is to reopen international travel as safely as possible in line with public health. That is what we will continue to do in addition to looking at further supports, which may be necessary for the sector.