Bernard Durkan (Kildare North, Fine Gael)
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222. To ask the Minister for Transport, Tourism and Sport the extent to which he expects to be in a position to assist the aviation sector post-Covid given the pressures experienced by airlines in recent times; and if he will make a statement on the matter. [32762/21]

Hildegarde 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.

My officials and I have maintained regular contact with key stakeholders throughout this crisis, and Government has put in place a range of supports for businesses, including the aviation sector. These supports include the wage subsidy scheme, waiving of commercial rates, deferral of tax liabilities, the COVID Restrictions Support Scheme, the Credit Guarantee Scheme, and the SBCI Working Capital Scheme. Liquidity funding is also available through the ISIF Pandemic Stabilisation and Recovery Fund for medium and large enterprises. It is estimated that, by the end of June this year, our airlines and airports will have received at least €300 million from several available supports.

In November 2020 the Government agreed a revised funding package of €80 million specifically for Irish aviation for 2021. €21 million is being provided under the Regional Airports Programme (2021-2025). This gives funding certainty to Donegal, Kerry and Ireland West Airport Knock and supports domestic PSO routes from Dublin Airport to Donegal and Kerry. €32 million is being provided to Cork and Shannon Airports through a new one-year COVID-19 Regional State Airports Programme. A €26 million, European Commission approved, 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. The scheme will augment the supports already in place and help the industry to maintain connectivity and recover from the impact of COVID-19.

Such supports and schemes notwithstanding, 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.

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.