Darren O'Rourke (Meath East, Sinn Fein)
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219. To ask the Minister for Transport, Tourism and Sport the formula used in calculating the distribution of funding among Irish airports of the €108 million approved under the Regional Airports Programme 2021-2025, the Covid-19 Regional State Airports Programme 2021 and the Covid-19 supplementary supports scheme for Irish airports recently approved by the European Commission; and if he will make a statement on the matter. [63428/21]

Hildegarde Naughton (Galway West, Fine Gael)
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As the Deputy is aware, on 15 December last I announced the provision of almost €108 million in direct Exchequer supports to the airports of Dublin, Cork, Shannon, Ireland West (Knock), Kerry and Donegal.  This funding was administered under the Regional Airports Programme 2021-2025, the Covid-19 Regional State Airports Programme 2021, and the Covid-19 Supplementary Supports Scheme for Irish Airports, as follows:

Of the €108m, almost €15 million was provided in operational support under the Regional Airports Programme and the Regional State Airports Programme to Shannon, Cork, Donegal, Knock and Kerry airports. This funding represents 100% of eligible operational expenditure, in the areas of safety and security, at these airports in 2021.  Targeting funding at vital operations at the airports such as air traffic control, fire services and security, ensures airports can continue to remain compliant with regulatory requirements in these areas.

The remaining €93 million was provided under the Supplementary Supports Scheme to Irish Airports. The EU’s Temporary Framework for State aid measures to support the economy in the current emergency of COVID-19, and Article 107(2)(b) of the Treaty of the Functioning of the European Union (TFEU), provide the basis for funding under this Scheme.

Funding to our smaller regional airports under the Temporary Framework covers the difference between earnings before interest and taxes (EBIT) from 1 March 2020 and 31 December 2021, up to a maximum of €1.8m per airport, compared to a comparable period in 2019.  The aid is in the form of a direct grant. Uncovered fixed costs incurred during the period between 1 March 2020 and 31 December 2021 have also been supported under the Temporary Framework. 

I am pleased to say that the funding allocated to our smaller regional airports of Donegal, Knock and Kerry means that these airports are being fully compensated for the damage caused by Covid during 2020 and 2021, to the maximum amounts allowable under the Temporary Framework. 

Funding to Dublin, Cork and Shannon Airports has been allocated under a Damages Measure under the TFEU. The purpose of this measure is to compensate the State airports for losses incurred as a direct effect of the containment measures adopted by the Irish Government in the period 1 April to 30 June 2020. The difference in EBIT from 1 April to 30 June in 2020 and 2019 was assessed when determining funding allocations. Funding was then allocated to each airport on a pro-rata basis in line with 2019 passenger numbers and calculated in accordance with the eligibility criteria of all measures under the approved State aid Scheme. This funding will continue to compensate airports for the damage caused as a result of Covid, by providing State airports with flexibility to roll out discounts on airport charges, with a view to supporting the recovery and restoration of strategic connectivity, including on long-haul routes, for Ireland.

Further information on the Regional Airports Programme 2021-2025, the Covid-19 Regional State Airports Programme 2021 as well as the Supplementary Support Scheme to Irish Airports, including eligibility criteria, is available here gov.ie - Irelands Regional Airports Programme 2021-2025 (www.gov.ie)