Written answers

Tuesday, 30 January 2024

Department of Transport, Tourism and Sport

Airport Policy

Photo of Violet-Anne WynneViolet-Anne Wynne (Clare, Independent)
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206. To ask the Minister for Transport, Tourism and Sport to comment on the current iteration of the regional airports programme; and if he will make a statement on the matter. [4313/24]

Photo of Violet-Anne WynneViolet-Anne Wynne (Clare, Independent)
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207. To ask the Minister for Transport, Tourism and Sport when a review into the Regional Airports Programme will conclude; and if he will make a statement on the matter. [4314/24]

Photo of Violet-Anne WynneViolet-Anne Wynne (Clare, Independent)
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208. To ask the Minister for Transport, Tourism and Sport the total to the nearest euro in State aid received by each airport in Ireland over the past ten years, in tabular form; and if he will make a statement on the matter. [4315/24]

Photo of Jack ChambersJack Chambers (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 206 to 208, inclusive, together.

The Regional Airports Programme for the period 2021 to 2025 was published by my Department on 4 February 2021. This Programme continues to support Ireland’s smallest airports i.e., those that provide scheduled passenger services and handle fewer than one million annual passengers (on average over the two preceding financial years). Eligible airports in 2024 are Donegal, Kerry and Ireland West. In addition to targeting funding at safety and security projects and activities, the Programme also supports projects with a sustainability focus, encouraging airports to reduce emissions and build climate resilience. Public Service Obligation (PSO) air services between Donegal and Dublin are also supported under this Programme, marking Government’s commitment to ensuring continued connectivity to the Donegal region.

National policy on regional airports is designed to optimise conditions for connectivity and regional development in line with Project Ireland 2040 as well as related Regional Economic and Spatial Strategies. Social and economic benefits can be derived from facilitating access to and from the associated regions. For this reason, the capacity of regional airports to facilitate international connectivity, either directly or via another national hub airport such as Dublin, is fundamental to this Programme.

As raised by the Deputy, the 2021-2025 Programme provides that a mid-term review be undertaken in 2023. My Department carried out a public consultation process last year to inform the review and officials have submitted their assessment to me which I am now considering. The review has considered the scope of the Programme, how it 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. I will be engaging with colleagues across Government in reaching a conclusion on the review and I would hope to reach a decision in the coming weeks.

In relation to the Deputy’s request for the level of aid provided to each airport in Ireland over the past 10 years, I can confirm that over the period 2014-2023, Exchequer supports totalling over €265m were provided to Irish airports by my Department. Over €149m in grant aid was provided to regional airports over this 10-year period, with an additional €116m provided in 2021 under a COVID Supplementary Support Scheme for Irish Airports.

For ease of reference, this funding has been broken down by funding scheme to each airport and is set out below under Table 1 – Supports to Regional Airports and Table 2 - COVID Supplementary Supports to Irish Airports.

TABLE 1: SUPPORTS TO REGIONAL AIRPORTS
AIRPORT SCHEME 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total
Donegal CAPEX €431,759 €231,290 €238,982 €460,941 €149,374 €43,275 €361,226 €1,916,847
PPR-C €398,995 €220,022 €362,995 €245,488 €583,017 €608,146 €103,609 €2,522,272
PPR-O €226,059 €356,597 €667,874 €657,061 €688,922 €580,617 €460,871 €638,409 €721,607 €4,998,017
Donegal Total €431,759 €625,054 €807,909 €667,874 €896,043 €1,512,858 €826,105 €1,193,262 €1,289,830 €1,186,442 €9,437,136
Kerry CAPEX €133,156 €181,440 €345,333 €814,448 €630,365 €97,490 €719,522 €184,158 €294,240 €3,400,152
PPR-C €402,783 €129,262 €237,184 €372,399 €1,288,376 €1,058,452 €2,066,822 €893,084 €30,915 €6,479,277
PPR-O €311,260 €626,855 €1,075,474 €1,198,847 €1,277,546 €1,499,564 €1,298,034 €1,434,355 €1,422,775 €10,144,710
OPEX €507,224 €507,224
Kerry Total €640,380 €714,043 €937,557 €1,657,991 €2,385,694 €3,196,287 €2,655,506 €4,084,378 €2,511,597 €1,747,930 €20,531,363
Ireland West CAPEX €1,925,413 €1,201,045 €502,361 €1,476,839 €6,702,288 €553,295 €1,725,054 €1,242,016 €1,789,604 €17,117,914
PPR-C €564,622 €764,609 €828,555 €782,704 €1,044,099 €329,740 €448,510 €1,081,845 €2,796,312 €8,640,996
PPR-O €598,349 €967,765 €1,868,439 €1,916,563 €1,736,516 €1,353,859 €1,017,826 €1,787,797 €1,868,947 €13,116,061
OPEX €548,600 €548,600
Ireland West Total €2,474,013 €1,162,971 €2,933,419 €3,199,355 €4,176,106 €9,482,903 €2,236,894 €3,191,389 €4,111,658 €6,454,862 €39,423,571
Waterford Emergency Subvention €750,000 €375,000 €375,000 €1,500,000
CAPEX €533,210 €43,839 €577,049
PPR-C €732,286 €18,381 €750,667
PPR-O €382,205 €425,722 €807,927
OPEX €1,038,784 €756,825 €594,493 €2,390,102
Waterford Total €1,571,994 €1,915,155 €1,038,596 €0 €750,000 €375,000 €375,000 €0 €0 €0 €6,025,745
Cork CAPEX €10,000,000 €3,382,463 €1,369,591 €14,752,054
PPR-C €675,000 €675,000
PPR-O €6,689,769 €10,402,880 €17,092,649
Cork Total €0 €0 €0 €0 €0 €0 €0 €16,689,769 €14,460,343 €1,369,591 €32,519,703
Shannon Emergency Capital Supports €303,513 €5,349,560 €1,126,539.35 €6,779,612
CAPEX €2,906,642 €2,930,739 €4,708,172 €10,545,552
PPR-C €3,161,336 €743,800 €664,668 €4,569,804
PPR-O €5,527,049 €6,836,610 €7,171,721 €19,535,380
Shannon Total €0 €0 €0 €0 €0 €0 €303,513 €16,944,587 €11,637,688 €12,544,561 €41,430,348
TOTAL €5,118,146 €4,417,223 €5,717,481 €5,525,220 €8,207,843 €14,567,048 €6,397,018 €42,103,385 €34,011,116 €23,303,386 €149,367,866

Funding Scheme Detail
Regional Airports Programme & COVID-19 Regional State Airports Programme 2021 CAPEX Funding safety and security related capital expenditure of an economic nature
PPR-C Scheme in place since 2015 - Funding capital expenditure for services that normally fall within a 'Public Policy Remit' and generate no economic return for an airport, for example Fire Service, Air Traffic Control and Security
PPR-O Scheme in place since 2015 - Funding operational expenditure that normally fall within a 'Public Policy Remit' (as above)
OPEX Scheme in place up until 2020 - Funding safety and security related operational expenditure of an economic nature - no airports eligible since 2016 Scheme
Exceptional Supports

Emergency Subvention Operational supports provided on an exceptional basis to Waterford Airport
Emergency Capital Supports Funding of an Embankments projects and a Hold Baggage Screening (HBS) security project at Shannon Airport (approved by Government in 2020).

Over €112m was provided under the Regional Airports Programme. A further €28m was provided under a one-year COVID-19 Regional State Airports Programme in 2021. At that time, by virtue of their size and passenger numbers, neither Shannon nor Cork airports had been eligible for funding under the Regional Airports Programme. However, in recognition of the impact COVID-19 had on regional State airports, Government provided capital and operational supports in 2021 to these airports. This one-year programme mirrored the focus and objectives of the Regional Airports Programme. Due to suppressed passenger numbers in 2020 and 2021, Shannon and Cork airports later become eligible for funding under the Regional Airports Programme in 2022.

On foot of a Government decision in 2020, additional capital supports totalling €6.78m were provided to Shannon Airport, to support vital Embankments works as well as the completion of a Hold Baggage Screening (HBS) project.

Although Waterford Airport had been eligible for funding under the Regional Airports Programme, in the absence of scheduled passenger services Waterford Airport has not been eligible for supports since 2016. However, in recognition of the financial challenges faced by the airport, emergency operational supports totalling €1.5m were made on an exceptional basis between 2018 and 2020, to allow time for airport management to consider future options for the airport.

TABLE 2: FUNDING UNDER THE COVID SUPPLEMENTARY SUPPORT SCHEME FOR IRISH AIRPORTS

AIRPORT 2021
Donegal €258,421
Kerry €1,797,586
Ireland West €2,805,709
Shannon €5,494,000
Cork €8,379,000
Dublin €97,240,000
TOTAL €115,974,716

In addition, in recognition of the very difficult circumstances faced by Irish airports during COVID-19 and taking account of the recommendations of the Taskforce for Aviation Recovery, a further unprecedented €116m was allocated to Irish airports in 2021 under an EU State Aid approved COVID Supplementary Support Scheme for Irish Airports.

This funding compensated the smaller regional airports at Donegal, Kerry and Ireland West for the damage caused to them by COVID-19. The funding allocated to our State airports at Dublin, Shannon and Cork provided them with the flexibility to roll out route incentives and charge rebates, in consultation with airlines. This funding supported the strong rebound in passenger traffic witnessed across Irish airports following the lifting of COVID-19 related travel restrictions in March 2022.

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