Written answers

Thursday, 17 June 2021

Department of Transport, Tourism and Sport

Aviation Industry

Photo of Darren O'RourkeDarren O'Rourke (Meath East, Sinn Fein)
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227. To ask the Minister for Transport, Tourism and Sport the estimated cost of providing a rebate directly to airlines of all Dublin Airport charges and air navigation charges as recommended in the Taskforce for Aviation Recovery report from July 2020. [32793/21]

Photo of Darren O'RourkeDarren O'Rourke (Meath East, Sinn Fein)
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228. To ask the Minister for Transport, Tourism and Sport the estimated cost of providing a common fixed amount per passenger to regional airports; as recommended in the Taskforce for Aviation Recovery report from July 2020. [32801/21]

Photo of Hildegarde NaughtonHildegarde Naughton (Galway West, Fine Gael)
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I propose to take Questions Nos. 227 and 228 together.

I can advise the Deputy that to put the cost of the type of rebate recommended by the Taskforce for Aviation Recovery into context, Dublin Airport revenue from passenger charges in 2019 was €307m with the average price per passenger of €9.18. The Commission for Aviation Regulation (CAR) set the price cap at €9.30 for 2019.

For 2020 and 2021 the CAR set the price cap per passenger at €7.50. If passenger numbers this year are in line with those in 2020 (7.4m passengers) - the costs could be in the region of €55m for 2021 if a full rebate was applied for this year.

Furthermore, I can advise the Deputy that from June 2020 to June 2021, the IAA invoiced airlines terminal charges of €6.2 million. These air navigation charges are attributable to aircraft landing/taking off at Dublin, Cork and Shannon airports (Terminal charges only).

In response to the recommendations of the Taskforce, Government put in place an €80m aviation support package which was announced on 10 November. This package includes €21.3 million for the Regional Airports Programme and €32.1 million for a new COVID-19 Regional State Airports Programme. Under these Programmes, the airports of Donegal, Kerry, Knock, Cork and Shannon will have access to capital and operational supports in 2021.

Following consultation with the European Commission, State aid Schemes to the value of €26 million to compensate airport operators for the losses caused by the COVID-19 pandemic were established. These schemes include compensation for State airports (Dublin, Cork and Shannon) of approximately €20 million, in light of Covid impacts in 2020. This funding Scheme was considered the most appropriate and State aid compliant way to provide State airports with flexibility to roll out route incentives/charge rebates, in consultation with airlines, with a view to supporting recovery and growth of connectivity.

The Department is currently assessing applications for this funding and would hope to be in a position to disburse this compensation in the coming weeks. In order to ensure parity of treatment, funding will be allocated proportionately in line with 2019 passenger numbers at the airports.

In addition, up to €6 million is also available to regional airports that provide connectivity (Knock, Kerry and Donegal) under the EU Temporary Framework in recognition of the impact of COVID on their business. Applications for funding under this measure are also currently being assessed and it is hoped that aid will be granted in the coming weeks.

Throughout the COVID-19, the Government has made significant funding available to the Irish aviation industry through a range of business supports. The bulk of the support to airlines is through the TWSS/EWSS wage subsidy schemes which were specifically designed to maintain the link between employers and employees. It is estimated that by end-June 2021, the sector will have received approximately €300 million in such supports. In addition, liquidity support has also been made available to the aviation industry through the ISIF Pandemic Stabilisation Fund. Aer Lingus has secured a €150m loan under this fund.

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