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

I thank Senator Buttimer for giving me the opportunity to make a statement with regard to plans for an aviation recovery strategy and the commitment of the Government to support our airports. We are all well aware that the aviation sector plays a critical role in our economy, as Senator Buttimer said, as a direct employer, an indirect employer and a driving force for tourism and business, including foreign direct investment. Government policies have consistently recognised and supported this contribution. Our national aviation strategy over the years has sought to enhance Ireland's connectivity by ensuring safe, secure and competitive access that is responsive to the needs of business, tourism and consumers.

Ministers have engaged extensively with all aviation stakeholders, including the aviation recovery task force, the National Civil Aviation Development Forum and the aviation sub-group of the Labour Economic Employment Forum. It is clear from this engagement that the single most important factor for Irish aviation was the earliest and widest possible reopening of international travel, subject to public health considerations. The Government has agreed a range of measures and has allowed the resumption of non-essential international travel since 19 July. Central to this was the substantial work undertaken to introduce the enhanced passenger locator form and the EU digital Covid certificate. Under these arrangements we have seen a very welcome recovery in passenger numbers, up nearly 300% since 19 July at our State airports by mid-September.

While passenger numbers at the airports are still only running at between 50% and 70% of pre-pandemic levels, we are seeing positive trends. In that regard, I very much welcome the news that Ryanair will reopen its Cork Airport base from December, the return of Aer Lingus to Shannon Airport on the Heathrow route and restoration of its Knock airport service to London in December. The announcement of the relaxation of the US travel rules for European travellers from November is also welcome and we can look forward to an increase in transatlantic traffic over the coming months. The announced return of both American Airlines and United Airlines to Shannon Airport is a positive development, particularly as transatlantic connectivity is key to any commercial activities in the mid-west region, including tourism and the hospitality sector.

An integral part of our current aviation policy is international connectivity which is fundamentally about access to markets and regions and it plays a key role in creating economic value. The importance the Government places on regional accessibility, development and connectivity is evident in the supports provided to our regional airports, through the Exchequer funded regional airports programme which also supports our public service obligation, PSO, service between Donegal and Dublin.

It is important to acknowledge what Government has done in regard to supports. There has been a comprehensive suite of measures to support businesses, including the aviation sector, such as the employment wage subsidy scheme and the waiving of commercial rates, which are the cornerstone of the Government’s unprecedented intervention to assist business. It is estimated that our airports and airlines have received more than €300 million under these support measures in addition to the aviation specific support package of €80 million, which was announced last November. This package represented a fourfold increase in the level of support normally provided to our airports under the regional airports programme, in addition to the €21 million made available to our regional airports under the programme for 2021, and for the first time Cork and Shannon Airports also received funding.

Having taken into account the recommendations of the task force for aviation recovery and in light of the impact of Covid-19 on Cork and Shannon Airports, the regional state airports programme for 2021 provided capital and operational supports of €32 million for these airports.

As Members will be aware, the European Commission approved under EU state aid rules a €26 million Covid-19 supplementary supports scheme to compensate airport operators for the damage caused by Covid-19.

Of this funding, the State airports were provided with €20 million, with the remaining €6 million allocated to the smaller regional airports of Ireland West Airport Knock and Donegal and Kerry Airports. I can advise the House that my Department is currently assessing the possible need and considering options for further targeted supports for aviation with a view to aiding the restoration of lost air connectivity and competitiveness.