Written answers

Thursday, 17 June 2021

Department of Transport, Tourism and Sport

Aviation Industry

Photo of Duncan SmithDuncan Smith (Dublin Fingal, Labour)
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67. To ask the Minister for Transport, Tourism and Sport the position regarding and his views on the job losses and reduced wages affecting workers in the aviation sector; and if he will make a statement on the matter. [31505/21]

Photo of Hildegarde NaughtonHildegarde Naughton (Galway West, Fine Gael)
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The Irish aviation sector is critical to Ireland’s economic development, as it is a key enabler of international trade and business, including foreign direct investment and tourism. For this reason, our aviation policy places a priority on international connectivity. The sector is experiencing the most challenging crisis in its history, with many analysts predicting that 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 cost 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.

Several public health measures have been introduced in relation to international travel, which have developed and evolved as the pandemic has progressed, with the objective of both limiting the spread of COVID-19 and limiting the presence of its variants of concern in Ireland.

The main requirement of all aviation stakeholders has been clarity from Government on a plan to permit the resumption of non-essential international air travel, and the Government outlined such a plan on 28 May, which is scheduled to begin on 19 July. This plan brings together the EU Digital COVID Certificates, pre-departure PCR testing, mandatory quarantine, and our public health measures so that international travel can operate safely. An “emergency brake” mechanism will also allow us to respond to the potential emergence of variants of concern.

While it may take some time for our aviation sector to regain the strong economic position it had at the start of the pandemic, Government has committed to ensuring that there will be no “cliff-edge” to the COVID-19 related business supports that are currently available. On 1 June, Government launched its Economic Recovery Plan 2021 with the goal of achieving rapid job creation and economic growth after the pandemic. This plan sets out new measures for businesses and affected sectors as the economy reopens, and details for existing emergency pandemic financial supports including the COVID Restrictions Support Scheme (CRSS), Employment Wage Subsidy Scheme (EWSS) and Pandemic Unemployment Payment (PUP), giving certainty to employers, workers, and for those who need it most. Importantly, this plan also recognised that additional support may be required for the recovery of the aviation sector.

With our vaccination programme progressing, a plan for the resumption of non-essential international travel ready and significant levels of business supports available, aviation is now positioned to begin to recover.

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