Jack Chambers (Dublin West, Fianna Fail)
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I would like to thank the Deputy for his continued interest in this matter. As you are aware Shannon Airport has made a submission to my Department requesting the establishment of a Public Service Obligation (PSO) air service to provide EU Hub Connectivity from Shannon Airport.

As previously advised, 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. Over the past 10 years Ireland has significantly rationalised PSO air services, with only one such route now supported under this scheme between Donegal and Dublin, ensuring connectivity to this remote region.

Given that it would be a significant shift to expand Government policy for the support of PSO air services beyond that of support on domestic routes, 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 consideration.

The potential impacts of any PSO policy change on existing routes from Shannon Airport also need to be considered. This is of relevance to the commercial service to London Heathrow as well as the new commercial service to Paris Charles de Gaulle which commenced in September 2023, both of which provide European Hub connectivity from Shannon Airport to onward international destinations. It is imperative that any intervention in this market does not distort competition.

The impact of the substantial Exchequer support totalling almost €47 million provided to Shannon Airport since 2021 also needs to be taken into account. This funding has supported the growth in connectivity at the airport, with passenger traffic in 2023 14% above 2019 levels (the last comparable period prior to COVID-19).

I can assure you that this matter has been given careful consideration as part of the mid-term review of the Regional Airports Programme. My Department carried out a public consultation process last year to inform this review and officials have submitted their assessment to me which I am now considering. I am currently engaging with colleagues across Government in reaching a conclusion on this review.