Cathal Crowe (Clare, Fianna Fail)
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17. To ask the Minister for Transport, Tourism and Sport when he received a Public Service Obligation application from the Shannon Airport Group in respect of a proposed Shannon to Amsterdam Schiphol route; if this application is congruent with state aid rules; when he expects to make a decision on this application; and if he will make a statement on the matter. [20802/23]

Jack Chambers (Dublin West, Fianna Fail)
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I would like to thank the Deputy for his continued interest in this matter. Following engagement between my Department and Shannon Airport last year, theDepartment agreed to consider the airport’s request for financial support to provide EU hub connectivity. On foot of this, a submission was made by the Shannon Airport Group to the Department in Q2 2022, putting forward a case for Exchequer support.

My Department’s Regional Airports Programme 2021-2025 provides for a Public Service Obligation (PSO) air service scheme, in compliance with Regulation (EC) No. 1008/2008, on the common rules for the operation of air services in the Community. This Regulation provides that a Member State may impose a PSO in respect of scheduled air services between an airport in the Community and an airport serving a peripheral or development region in its territory, or on a thin route to any airport on its territory, any such route being considered vital for the economic and social development of the region which the airport serves.

To date national policy on regional airports has been largely influenced by the need to optimise conditions for connectivity and regional development. Under Ireland’s PSO air service scheme financial support is provided to an airline to operate essential air services to isolated areas – those not adequately served by alternative transport services to administrative, business, education and medical centres. In line with this, PSO air services are limited to one route connecting Donegal and Dublin airports.

In consideration of the request to support EU hub connectivity, it would be a significant shift to expand national policy for the support of PSO services beyond that of support on domestic routes. Given this, 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, needs careful consideration. Due consideration also needs to be given to any possible impact on existing routes from Shannon Airport, and in particular the commercial service to Heathrow Airport which currently provides European Hub connectivity from Shannon to onward international destinations. It is imperative that any intervention in this market does not distort competition.

The Regional Airports Programme 2021-2025 commits to carrying out a mid-term review of operational supports in 2023. I intend to launch a public consultation to inform this review shortly. It is envisaged that submissions received as part of this consultation process will contribute to the development of policy on future appropriate and cost-effective support measures for Ireland’s regional airports, including the development of future programmes.

The mid-term review will also consider how the Programme is currently delivering on its objectives, primarily in the context of how international connectivity and services, to and from the regions can be maintained and enhanced, whilst also exploring how balanced regional development is being supported.

Taking the above into consideration, an assessment of Shannon Airport Group’s submission is currently being finalised by my Department, with a view to it being submitted to me for my consideration this month.