Timmy Dooley (Fianna Fail)
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As the Minister of State knows, the aviation sector has been decimated by Covid-19. While the roll-out of the vaccine is making wonderful progress and, for most people, the end of the pandemic is in sight, unfortunately, it is not so for the aviation sector. Its global foundations have been rocked to the core. The sector, quite frankly, feels abandoned by this Government. Towards the end of last week, we had a situation where Stobart Air indicated it was going into liquidation. That is having a very significant impact on connectivity and on the nearly 500 people who work for the company. With regard to Lufthansa Technik, based on media reports over the weekend there is an indication that it is having a strategic review of operations at Shannon Airport. Given approximately 500 people are working in that operation, there are real concerns in the sector. This comes on the back of Aer Lingus recently announcing the closure of the cabin crew base at Shannon Airport, with no idea or indication of when it is going to reinstate routes to London Heathrow, Boston and New York, all of which very important routes for balanced regional development, inward investment and connectivity.

For a country so dependent on aviation for connectivity and jobs, it seems absurd that we have the most restrictive regulations and travel restrictions in Europe. The failure to endorse rapid antigen testing is ridiculous, in my view, and is preventing people and the sector from having any kind of meaningful recovery. The delay in rolling out the EU digital Covid certificate to 19 July is hard to fathom when we consider the vast majority of countries across Europe are rolling it out from 1 July. There is a failure by the Government to engage meaningfully with airports and airlines and to set out a strategy setting out a clear funding model to support and underpin strategic routes while passenger numbers take time to recover, as they will, and to get back to a point where they are profitable and sustainable again. I appeal to the Minister of State to get the Government to implement this action plan.

Jerry Buttimer (Fine Gael)
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I welcome the Minister of State. I endorse what Senator Timmy Dooley has said. It is imperative and incumbent upon the Government to ensure we maintain connectivity as an island nation. It is time for a real hands-on approach from the Government to engage with an all-embracing travel and aviation sector, and that includes the airlines, the airports, the staff, the travel agents, hospitality and tourism. This is not just about Senator Dooley and I looking to protect Cork and Shannon airports and the staff, who have taken gargantuan hits already and who have made huge sacrifices and changes. This is about us, as an island nation on the periphery of Europe, yet at the heart of Europe. It is what we must do. We must take on board what Senator Dooley said in the context of the Covid-19 travel certificate. The Cathaoirleach is from Kerry. It is also about going to America and reopening and re-engaging transatlantic routes. We have the most conservative travel restrictions in the world.We could spend the entire day debating this Commencement matter. It is about jobs, foreign direct investment and a compendium of travel, industry, aviation and business. More important, it is about people's livelihoods. I hope that in the near future, we can have a bigger and wider debate on the aviation sector.

James Browne (Wexford, Fianna Fail)
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I thank Senators Dooley and Buttimer for raising this critical matter for the aviation sector regarding regional access within Ireland and connectivity throughout the world. I am taking this matter on behalf of the Minister of State at the Department of Transport, Deputy Naughton, who cannot be here but who sends her apologies.

I would like to provide an update on the challenges facing the aviation sector and the steps being taken by the Government to restore connectivity and ensure the industry will be well positioned to recover once the public health crisis has abated. The Government is very aware of the critical importance of regional and international air connectivity to Ireland's economic development and growth. It is a key enabler of international trade and business, including foreign direct investment and tourism. For this reason, the Government places a priority on international connectivity. Over the years, Ireland's aviation policy has supported a robust and dynamic sector and facilitated rapid growth in new routes and passenger numbers. The sector is experiencing its most challenging crisis, however, with many analysts predicting it will take several years for it to return to 2019 levels of activity.

All service providers in the sector, apart from those substantially or exclusively dedicated to air cargo, have had no option but to radically address their core base and seek to safeguard liquidity. Alongside rationalisation measures, the major service providers are shoring up their finances through increased borrowings or raising new capital. Regrettably, Stobart Air's plans to secure a new buyer failed over the weekend. This resulted in the airline ceasing trading and a liquidator is expected to be appointed imminently.

The announcement is deeply regrettable for the 480 Stobart Air workers who have been directly impacted by the decision, and my thoughts are with those families who have been seriously affected by this shock decision. Job cuts have, unfortunately, been a feature of other European airlines as a direct consequence of Covid. The temporary wage subsidy scheme, TWSS, followed by the employment wage subsidy scheme, EWSS, have been generally successful in maintaining the link between airlines and their employees during the Covid crisis. In this instance, however, the loss of its franchised contract for the operation of regional UK routes and other factors made Stobart Air's position untenable.

The restoration of regional connectivity is critical for the Government and work is under way to secure a new operator on these vital regional routes as soon as possible. The Government is acutely aware of the ongoing impact of the pandemic on the aviation sector and has put in place a range of supports for businesses including the aviation sector. These supports include the wage subsidy scheme, a waiving of commercial rates, a deferral of tax liabilities, the Covid restrictions support scheme, the credit guarantee scheme and the Strategic Banking Corporation of Ireland working capital scheme. Liquidity funding is also available through the Ireland Strategic Investment Fund pandemic stabilisation and recovery fund for medium and large enterprises.

The Government also allocated funding for an €80 million aviation-specific support package in 2021. In addition to €21 million in funding for regional airports under the regional airports programme for 2021, a further allocation of up to €6 million to the regional airports under a state aid-compliant scheme is available in 2021. This is in recognition of the impact of Coivd-19 on our smaller airports, and Donegal, Kerry and Knock Airports are eligible for funding under the scheme. Applications for funding under this measure are being assessed and the Minister of State, Deputy Naughton, hopes to be in a position to allocate funding within the coming weeks. Approximately €32 million is also being provided to support Cork and Shannon Airports this year.

Additionally, the Department of Transport is assessing applications for funding to State airports under the €20 million Covid-19 supplementary support scheme, and the Minister of State expects to soon be able to provide funding to Cork and Shannon Airports under the scheme. This support will allow the airports flexibility to provide route incentives and airport charge rebates to stimulate the recovery of lost connectivity this year. Government policy on regional airports seeks to optimise conditions for regional development and connectivity, both for social and economic benefits. The Government recognises that, as employers, they contribute to the local economy and employment is supported through the various ancillary services provided to the airport.

Timmy Dooley (Fianna Fail)
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Unfortunately, key stakeholders - the airlines and airports - do not believe the Government has engaged in a manner that would help to give confidence to the sector to begin the process of recovery. The Minister of State rightly identified that it will take a number of years, but we have got to start somewhere. That level of discussion and negotiation needs to begin now. As much certainty as possible needs to be given to the key players, namely, the airports and airlines.

Jerry Buttimer (Fine Gael)
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The Minister of State's response in itself was fantastic but, as Senator Dooley rightly said, we now need the aviation recovery task force to be re-established with a clear remit. As the Minister of State correctly stated, it will take time to drive a plan for the recovery of the aviation sector.

James Browne (Wexford, Fianna Fail)
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I acknowledge that both Senators have a genuine interest in the sector, not just locally or regionally but nationally as well. It is a matter that both have raised regularly, even before the pandemic. I will convey all their concerns to the Minister of State and the Government to ensure that whatever steps can be taken will be taken as quickly as possible. I agree that speed in regard to this matter is as important as doing the right thing, so we need to act quickly.