Written answers

Wednesday, 5 May 2021

Department of Transport, Tourism and Sport

Aviation Industry

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Social Democrats)
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202. To ask the Minister for Transport, Tourism and Sport the status of each of the recommendations made by the Aviation Recovery Taskforce; and if he will make a statement on the matter. [23220/21]

Photo of Hildegarde NaughtonHildegarde Naughton (Galway West, Fine Gael)
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The majority of the recommendations of the Aviation Recovery Taskforce have been implemented where possible. The recommendations broadly ranged from measures to improve the safety of air travel, to rebuilding regional and international connectivity, and to making financial support measures available to the sector. The current course of COVID-19 means that international travel is reduced to only essential journeys, and in that context the aviation sector is operating at very low levels of activity.

The Taskforce report was very much focused on how to aid recovery, and while now is not the time to stimulate and encourage recovery, the building blocks for recovery are being put in place for when the public health situation can support the gradual return of non-essential international air travel.

A number of financial supports have been made available to the aviation industry, including meeting the Taskforce’s recommendations for the extension of the wage subsidy scheme and the provision of liquidity supports. The wage subsidy scheme has been extended into 2021, as has the waiver of commercial rates. Liquidity support for medium and large enterprises has been made available to all sectors, including the aviation sector, through the ISIF Pandemic Stabilisation and Recovery Fund.

In November 2020, in recognition of the very difficult circumstances facing the aviation sector, the Government agreed a revised funding package of €80 million for Irish aviation in 2021. A part of this package, over €21 million, is being provided to our Regional Airports Programme (RAP). The new RAP, published on 4 February, gives funding certainty to those airports up to 2025. Those airports eligible for RAP support are Donegal, Kerry and Ireland West (Knock). Additionally, €32 million is being provided to Cork and Shannon Airports through a new one-year COVID-19 Regional State Airports Programme. Both of these programmes have been created in line with EU State Aid rules.

The European Commission has approved, under EU State aid rules, a €26 million Irish state aid scheme to compensate airport operators for the losses caused by COVID-19 and the travel restrictions imposed by Ireland to limit its spread. This scheme 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 scale of the challenges created by COVID-19 are better understood now than when the Taskforce reported. While the recommendations of the Taskforce do remain relevant, those relating to recovery and growth of air traffic can only be progressed at the appropriate time, in line with the easing of travel restrictions and improving wider epidemiological conditions.

My Department will forward an updated report to the Deputy, in tabular format, on the status of implementation of each of the recommendations.

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