John O'Mahony (Mayo, Fine Gael)
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To ask the Minister for Transport, Tourism and Sport in light of the recent commitment to Shannon Airport, his views on whether this will have an adverse effect on the future potential of Ireland West Airport Knock; and if he will make a statement on the matter. [54428/12]

Leo Varadkar (Dublin West, Fine Gael)
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At yesterday’s major conference on Irish civil aviation policy I announced that the Government has confirmed its decision in principle of last May to separate Shannon Airport from the DAA and merge it with a restructured Shannon Development. This decision will free the board and management of Shannon airport, together with their employees, to bring a fresh approach to the future development of the airport. A key element of that future will be the development of an International Aviation Services Centre (IASC) in and around the airport, building on a range of aviation-related activities already undertaken in Shannon such as aircraft maintenance and leasing.

In addition to initiative on State airports, I have also rationalised the system of State support for regional airports and the Government now has a settled policy in relation to these airports. All Irish airports should operate to a commercial mandate and I have stressed in the past that regional airports, including Knock airport, must work towards achieving operational viability over the near term.  

 Knock Airport, along with the other regional airports which are not owned by the State, has been supported over the years under the Regional Airports Programme which is aimed at ensuring balanced regional development.  Under that programme, Knock Airport has received around €40m since 1993. This includes funding for the PSO air services, which although paid directly to the airlines, also supports the airport.  Over €1m is being provided this year to the Airport, despite the difficult economic circumstances of the country. 

As was highlighted again at yesterday’s conference, aviation is a key component to all major forms of economic activity in Ireland, including tourism and our other business sectors.  The measures we are taking are based on increasing the overall number of passengers to and from Ireland through increased efficiencies and the attraction of new aviation business that can have a beneficial national impact.  I believe that these measures will form the basis for sound, sustainable, airport businesses into the future that will support the growth of these sectors and help drive Ireland’s economic recovery.