Cathal Crowe (Clare, Fianna Fail)
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84. To ask the Minister for Transport, Tourism and Sport if his Department has received a Public Service Obligation application from an organisation (details supplied) in terms of a service established between Shannon Airport and Amsterdam Schiphol Airport; and if he will make a statement on the matter. [46096/22]

Hildegarde Naughton (Galway West, Fine Gael)
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I can advise the Deputy that my Department is currently considering a request from Shannon Airport in relation to the establishment of a Public Service Obligation (PSO) route to provide EU Hub connectivity from Shannon Airport.

To date policy on regional airports has been largely influenced by the need to optimise conditions for regional development and connectivity. While the establishment of air services is a commercial matter between airports, airlines and other market actors, the Regional Airports Programme provides for a PSO air services scheme in compliance with Regulation (EC) No. 1008/2008. Under this scheme financial support is provided to airlines that operate essential air services to isolated areas – those not adequately served by alternative transport services to administrative, business, education and medical centres.

With regard to expanding current PSO services, over the past 10 years Ireland has significantly rationalised PSO air services, with only one such route now supported under this scheme between Donegal/Dublin. It would be a significant shift to expand Government policy for the support of PSO services beyond that of support on domestic routes. It would also be important to consider the potential impact of such a policy, not only on the Exchequer, but also on similar routes operating on a commercial basis from other regional airports.

Furthermore, it is Government policy that State-owned airports operate on a fully commercial basis without recourse to Exchequer funding. However, in light of the devastating impacts of COVID-19 and in recognition of the importance of Shannon Airport and Cork Airport to their respective regional and local economies, government provided on an exceptional basis funding to both Shannon and Cork airports.

In addition to the horizontal COVID-19 supports provided to all businesses, over €22 million in Exchequer supports were allocated to Shannon Airport in 2021. This year, in light of its suppressed passenger numbers, Shannon Airport can also avail of supports under the Regional Airports Programme. I allocated €4.3m in capital funding to Shannon Airport in April which will support the completion of a broad range of safety, security and sustainability focused projects. Shannon Airport is also eligible for operational grant-aid under the Programme which I will allocate to eligible airports later this year from an overall budget of €22 million. Shannon Airport will remain eligible for funding under the Programme in 2023.

While I am satisfied that substantial Exchequer support recently provided to Shannon Airport has positioned the Airport for recovery and growth into the future, I have asked my department to expedite the consideration of this request.