Mary Butler (Waterford, Fianna Fail) | Oireachtas source

I thank the Cathaoirleach for his wishes. The Minister of State, Deputy Naughton, sends her apologies, as she is not able to be here this morning. The Senator hit the nail on the head when she said Shannon Airport has come through "turbulent times". No two words could better sum up what we have come through in the past 18 months. Ireland is particularly dependent on air connectivity, both socially and economically. Aviation plays a crucial role in our economy as a driving force for tourism and business, including foreign direct investment. Civil aviation is emerging from by far the most challenging crisis it has ever faced, with many analysts predicting that it will take several years to return to 2019 levels of activity. Eurocontrol data indicates that overall aircraft movements within its pan-European network are currently holding at around 70% of 2019 levels.However, recovery in Ireland is slower, with aircraft movements at approximately 50% of 2019 levels. The Government has a comprehensive suite of measures in place to support businesses in addressing the impact of Covid-19, including those in the aviation sector. It is estimated that, through several available supports, Irish airlines and airports have received more than €300 million.

In addition to the Government's economy-wide support measures, in November 2020 an €80 million funding package for Irish aviation was announced. This package included the regional airports programme, which provided more than €21 million to our regional airports for 2021 and which supports the operation of our public service obligation air services. The Covid-19 regional State airports programme for 2021 provided €32 million to Cork Airport and Shannon Airport. Under EU state aid rules, the European Commission approved a €26 million Covid supplementary supports scheme to compensate airport operators for a portion of the damage caused by Covid-19 and the travel restrictions imposed by Ireland to limit its spread.

These supports notwithstanding, our airlines and other aviation stakeholders have had to make several difficult decisions to best ensure their long-term commercial viability. These decisions have focused on areas such as redundancies, laying off staff and the 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 the working hours and pay received by their staff. Most operators have also raised new funding, where possible, either through increased borrowings or the issue of new capital.

Non-essential international travel was permitted to resume from 19 July this year. The progress made with our national vaccination programme, the introduction of the EU digital Covid certificate and the adoption of an emergency brake mechanism to allow for an appropriate response to the potential emergence of any Covid-19 variants that present new or increased risk to public health means that international travel can operate safely. It is hoped that the recent announcements of the resumption of international travel between the US and Europe for vaccinated travellers in November and the discontinuation of our mandatory hotel quarantine system for those arriving from designated states will accelerate the restoration of extra-European air services and the recovery in the transatlantic market, which is of particular importance for Ireland.

I assure the Senator that Shannon Airport is a key element in our regional development plans. Shannon Group has availed of the economy-wide supports provided by Government as well as having received funding under our bespoke aviation support schemes. In total, the Government has allocated almost €33 million in support to Shannon Group since the crisis began and this will assist in positioning it for recovery. Prior to this, Shannon Airport, like all of our State airports, was self-funding.

Of the €26 million provided for under our EU-approved state aid scheme to compensate airport operators for a portion of the Covid-19 related damage to business between April and June 2020, our State airports were provided with €20 million in funding. Funding was allocated on apro ratabasis, with 2019 passenger figures used to determine the appropriate apportionment of funds. Shannon Airport received just under €1 million which will afford it greater flexibility in its ability to offer route incentives, in consultation with airlines.

The economic recovery plan 2021 launched with the goal of achieving rapid job creation and economic growth after the Covid-19 pandemic. This plan set out new measures and provided for the continuation of business supports. Importantly, this plan also recognised the potential need for additional supports for aviation. Officials in the Department of Transport are considering the possible need and options for further targeted supports for aviation with a view to aiding in the restoration of lost air connectivity and competitiveness.