Catherine Murphy (Kildare North, Social Democrats)
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393. To ask the Minister for Transport, Tourism and Sport the level of intervention he will take in respect of State airports in the context of the ongoing Covid-19 pandemic; and his plans to introduce a further round of financial assistance to State airports in 2021-22 in view of the real possibility that inward and outbound air travel may not be possible again in 2021. [15862/21]

Hildegarde Naughton (Galway West, Fine Gael)
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As the Deputy will be aware, from early in the Covid crisis, the Government put in place a broad range of unprecedented supports to help mitigate the effects of the pandemic on business, including a wage subsidy scheme, grants, low-cost loans, a commercial rates waiver and deferred tax liabilities.  Irish airlines and airports have availed of over €200 million through these supports and some of these schemes have been extended until the end of June. Our State airports at Dublin, Cork and Shannon are availing of these supports.

In addition, in recognition of the very difficult circumstances being faced by airports and taking account of the recommendations of the Taskforce for Aviation Recovery, the Government announced an €80 million funding package specifically for Irish aviation in November, 2020, which includes funding for State airports in 2021.

As part of that package, €32.1 million has been allocated to a new Covid-19 Regional State Airports Programme. The State airports that will benefit from this funding are Cork and Shannon.  My Department is currently reviewing applications for capital supports under this Programme and I expect recommendations for funding to be submitted to me for consideration shortly.  Cork and Shannon Airports will also be invited to apply for operational supports under this Programme, later in the year.

In addition to funding under the Covid-19 Regional State Airports Programme 2021, my Department has also developed supplementary support schemes to help address liquidity issues at airports as a result of Covid-19.

These new schemes, for which a budget of €26 million has been allocated in 2021, were State aid approved by the European Commission on 24 February.

One of these schemes, with a budget of approximately €20 million, has been designed specifically to help compensate State airports for damage caused by Covid-19 in 2020.  The Scheme will provide the airports with the flexibility to roll out route incentives/charge rebates, in consultation with airlines, with a view to supporting recovery and growth of connectivity when circumstances allow.  State airports will be invited to apply for funding under this scheme shortly.

It cannot be excluded that further targeted supports may be required, particularly in the event that restrictions on travel remain in place throughout the forthcoming summer season and Government will continue to monitor the situation in this regard.

Catherine Murphy (Kildare North, Social Democrats)
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394. To ask the Minister for Transport, Tourism and Sport the level of intervention he will take in respect of airlines in the context of the ongoing Covid-19 pandemic; and if he plans to offer a financial assistance package to carriers. [15863/21]

Hildegarde Naughton (Galway West, Fine Gael)
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The Government has put in place a range of supports for businesses, including those in the aviation sector. The supports include the wage subsidy scheme, alleviation of commercial rates, deferral of tax liabilities, the COVID Restrictions Support Scheme, the Credit Guarantee Scheme, and the SBCI Working Capital Scheme.

As regards supports specifically targeted at the protection of employment, the Employment Wage Subsidy Schemes (EWSS) has been a key component of the Government's response to the COVID-19 crisis to support viable firms and encourage employment amid these very challenging times and has been extended to the end of June 2021.

In November 2020, the Government also agreed a revised €80 million funding package specifically for Irish aviation in recognition of the very difficult circumstances facing the sector. The European Commission has approved, under EU State aid rules, a €26 million Irish aid scheme to compensate airport operators for the losses caused by the coronavirus outbreak. The aid consists of three measures: a damage compensation measure; an aid measure to support the airport operators up to a maximum of €1.8 million per beneficiary; and an aid measure to support the uncovered fixed costs of these companies. The aid will take the form of direct grants.

The Ireland Strategic Investment Fund (ISIF), part of the National Treasury Management Agency (NTMA), has invested €150 million in debt funding in Aer Lingus. This is being made from ISIF’s €2 billion Pandemic Stabilisation and Recovery Fund (PSRF), which was established in 2020 as a key support for medium and large Irish employers whose businesses have been affected by COVID-19. This funding, finalised in Q4 2020, is a three-year debt facility that will strengthen the airline’s liquidity position and is designed to complement the ongoing investment in the airline by its parent company, International Airlines Group (IAG).

It remains open to airlines to engage directly with the relevant agencies concerned with a view to drawing down supports, and the amount of any such funding sought would be a commercial matter for the airlines concerned. 

Any additional supports designed to facilitate growth of air traffic can only be progressed at the appropriate time, taking account of the outlook for the easing of travel restrictions and improving wider epidemiological conditions. 

I will continue to monitor the financial impact of COVID-19 on the Irish aviation sector on an ongoing basis in consultation with relevant Government Ministers and all key stakeholders.