Written answers

Monday, 9 September 2024

Department of Transport, Tourism and Sport

Airport Policy

Photo of Peadar TóibínPeadar Tóibín (Meath West, Aontú)
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228.To ask the Minister for Transport, Tourism and Sport the cost to the State, on an annual basis, of unused capacity, respectively, at Cork, Shannon and Knock airports.[34590/24]

Photo of James LawlessJames Lawless (Kildare North, Fianna Fail)
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I wish to advise the Deputy that while Shannon and Cork airports are State-owned, Ireland West Airport (Knock) is not, and therefore my response focuses on Shannon and Cork Airports.

National Aviation Policy recognises the important role that regional airports play in their areas and in facilitating regional development. Economic Impact Assessments of both Shannon Airport and Cork Airport, recently published by the respective airports, reflect their strong contribution to the economy and the communities they support.

The Shannon Airport Group report estimated that the Group delivers a contribution of almost €4 billion to Ireland’s GDP, supports over 20,300 jobs across the Irish workforce, and contributes €643m in tax revenues. Cork Airport’s Economic Impact Study shows that it contributes to the employment of 12,650 people in Ireland and contributes €1.045bn in Gross Value Added. While there is no actual cost to the State, on an annual basis, of unused capacity respectively at Cork, Shannon and Knock Airports, one can see from the economic impact studies commissioned by the airports' that a further contribution to our economy is possible as these airports continue to grow.

Both Shannon and Cork airports have seen strong growth since the recovery of passenger numbers following the pandemic, and both are planning for further growth over the coming years. In 2023 passenger numbers at Shannon Airport were 1.96 million, the highest level for 14 years. For the first six months of 2024, passenger numbers are 8% higher compared to last year, with the airport expecting 2 million passengers this year. Shannon Airport's 2024 summer schedule provided services on 33 routes to 11 countries, including a new daily New York-JFK service with Delta Airlines. In total, nine services increased frequencies, providing 130,000 extra seats.

Cork Airport had 2.8 million passengers in 2023. Passenger numbers in 2024 to end July are 11% higher compared to last year, with the airport on track to exceed 3 million passengers this year. Their 2024 summer provided services on 48 routes, providing 2.4 million seats. In July, daa announced new incentives on airport charges at Cork Airport for airlines who move routes and capacity from Dublin to Cork while the passenger cap remains in place at Dublin Airport.

Government currently supports Shannon and Cork airports under the recently announced Regional State Airports Sustainability Programme. This Programme has a capital budget of €4.225m available to support Cork and Shannon airports’ sustainability plans. Government also continues to support Ireland’s smallest airports that provide scheduled passenger services and handle fewer than one million passengers per annum under the Regional Airports Programme. The Department is currently exploring how policy can better align with Project Ireland 2040’s objective of promoting balanced regional development by undertaking a detailed analysis in relation to the broadening of the scope of Programme eligibility to allow for the inclusion of airports with greater than one million passengers.

A consultation process 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 is also being progressed.

Finally, the Deputy may wish to be aware that Tourism Ireland strongly promotes regional airports (including Cork, Shannon and Ireland West) to overseas tourism markets through the Government’s Regional Access Cooperative Marketing Access Scheme enabling tactical partnerships and activities that will help drive increases in visitors to the regions, amplifying the Ireland message overseas and supporting direct access.

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