Alan Dillon (Mayo, Fine Gael)
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177.To ask the Minister for Transport, Tourism and Sport the investment in the regional programme since 2020; his plans for future projects at regional airports, including Ireland West Airport Knock; and if he will make a statement on the matter. [31305/24]

James Lawless (Kildare North, Fianna Fail)
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As the Deputy will be aware, in line with National Aviation Policy, regional airports are supported under a Regional Airports Programme. This Programme supports Ireland’s smallest airports, those that provide scheduled passenger services and handle fewer than one million passengers (on average over the two preceding financial years). Eligible airports in 2024 are Ireland West (Knock), Kerry and Donegal. In addition to targeting funding at safety and security related activities and operations, 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.

Since 2020, nearly €125m in Exchequer funding has been provided to regional airports by my Department. This funding included over €70m under the Regional Airports Programme. In addition, and 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 €19m was allocated to regional airports in 2021 under an EU approved COVID-19 Supplementary Support Scheme for Irish Airports. This funding compensated the smaller regional airports at Ireland West, Kerry and Donegal for the damage caused to them by COVID-19. Funding provided to Shannon and Cork regional State airports provided them with the flexibility to roll out route incentives and charge rebates, in consultation with airlines. A further €28m was provided to Cork and Shannon regional State airports under a one-year COVID-19 Regional State Airports Programme in 2021. Additional emergency capital supports totalling €6.78m were also provided to Shannon Airport, to support vital Embankments works as well as the completion of a Hold Baggage Screening (HBS) project. In addition, exceptional emergency funding of €375K was provided to Waterford Airport in 2020 to allow time for airport management to consider future options for the airport.

This level of targeted support is an indication of the importance Government attaches to our regional airports. I am pleased to see that Ireland has established good connectivity via our regional airports with the UK, Europe and America. The targeted Exchequer funding to this sector has supported this connectivity, with overall passenger traffic across Irish regional airports in 2023, 9% above 2019 levels (the last comparable period prior to COVID-19). I am also encouraged by the strong growth experienced to date this year, with passenger traffic to end June again 9% higher when compared to the same period last year.

This connectivity will be further supported this year. In April, €5.6m was allocated under the Regional Airports Programme to support 32 capital investment projects across Ireland West, Kerry and Donegal airports. Almost €3.7m of this allocation will support 14 projects at Ireland West Airport alone. A further €4m is available for allocation to these three airports later this year to support up to 100% of eligible non-economic payroll and operational costs in the areas of safety, security and air traffic control (ATC).

With regard to future planning, a mid-term review of the Regional Airports Programme was undertaken by my Department in 2023. While the primary focus of this review was on the performance of the Programme to date, recommendations and proposed actions on foot of this review, may contribute to the development of policy on future appropriate and cost-effective support measures for regional airports in Ireland, including the development of any future Programme.

The review found that the Programme is delivering on its objectives and is in line with Ireland’s National Aviation Policy. The review acknowledges, however, that further consideration could be given to how the Programme could better support connectivity and regional development. In line with the recommendations made under the review, I was pleased to announce the high-level outcomes of the review last week.

In relation to Ireland West Airport, there are four key initiatives which I have announced, which will be of particular interest to the airport, as follows:

• The scope of sustainability projects supported under the Regional Airports Programme has been expanded to include projects relating to the production of electricity from renewable sources such as Solar PV farms.
• To continue to support airports, such as Ireland West, who forecast passenger growth beyond the one million passenger eligibility threshold under any future programme, consideration will be given to the extension of supports, on a temporary phased step-down basis, to avoid a ‘cliff edge’ in supports.
• Further still, a detailed analysis will be undertaken in relation to the broadening of the scope of Programme eligibility to allow for the inclusion of airports, with greater than one million passengers in the next Regional Airports Programme.
• A consultation process will be undertaken with relevant stakeholders to consider the potential for the development of a Start-up Aid Scheme for airlines to support strategic route development to and from the regions.