Seanad debates

Wednesday, 23 March 2022

Nithe i dtosach suíonna - Commencement Matters

Aviation Industry

10:30 am

Photo of Joe O'BrienJoe O'Brien (Dublin Fingal, Green Party) | Oireachtas source

I thank Senator Buttimer for his Commencement matter. On behalf of the Minister of State, Deputy Naughton, I welcome the opportunity to discuss this topic with Members of the House.

It is well acknowledged that Covid-19 has had a devastating impact on the aviation industry, not just in Ireland but globally. In 2020, the number of passengers handled in our main airports fell by a staggering 78% on 2019 levels. In 2021, passenger figures across the State were down 76% on 2019. In the interest of public health, certain travel restrictions and public health measures were introduced by the Government. Arrivals into Ireland were subject to a range of health-related requirements which had the effect of restricting passenger traffic. Possibly the most extreme requirement was mandatory hotel quarantine, which for certain travellers was introduced in March of 2021 and ran until September 2021. Legislation permitting its reintroduction was introduced in December 2021, as were additional entry requirements due to the emergence of the Omicron variant. The Government was always clear that such measures would remain in place only as long as absolutely necessary. As of 6 March this year, there are no Covid-related requirements for entering the State.

During the pandemic, two aviation recovery plans were drafted, one by the aviation recovery task force appointed by the Minister and another by the National Civil Aviation Development Forum, a standing body that brings together key aviation stakeholders in the State. While the constantly evolving epidemiological situation made implementing some recommendations challenging, most of the recommendations of the aviation recovery task force were implemented in some way.

The forum plan, published in April 2021, contained recommendations that the forum believed best provided for the restart and recovery of the aviation sector in Ireland. The recommendations spanned policy areas across government and required engagement across several Departments, which was undertaken by the Minister of State, Deputy Naughton. The Minister of State also engaged with forum stakeholders on the steps necessary to ensure operational readiness when international travel resumed at scale. This plan helped pave the way for the Government's decision to reopen non-essential international travel on 19 July last year.

Throughout the pandemic, the aviation sector availed of the considerable suite of economy-wide support measures, particularly the wage subsidy scheme. It is estimated that these horizontal supports totalled more than €360 million by the end of 2021. Additionally, over €160 million in aviation-specific supports was allocated to Irish airports during 2021, including €116 million under a Covid supplementary support scheme. This European Commission-approved state aid put our State airports in funds to allow them greater flexibility to roll out route and other incentives. Without this support, these airports would not have been in a position to incentivise the recovery to the same extent. It is expected that this funding will support the restoration of international connectivity, evidence of which we are beginning to witness.

Summer 2022, as the Senator remarked, is expected to mark the turning point for aviation. A considerable number of new routes have been announced from Dublin and transatlantic services from Shannon recommenced earlier this month. Cork Airport will have eight airlines serving 37 routes, and Shannon Airport will have three airlines serving 25 routes.

There are currently no plans within the Department of Transport to establish a further recovery plan for aviation, having regard to the broadly positive outlook for the short term. However, work on a new national aviation policy with a medium-term perspective is intended to recommence this year, which will take account of the changed environment.

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