Republic's six regional airports to receive over €5m in State subsidies

THE STATE’S six regional airports have been allocated more than €5,392,334 by the Minister for Transport Leo Varadkar to cover…

THE STATE’S six regional airports have been allocated more than €5,392,334 by the Minister for Transport Leo Varadkar to cover a portion of operating costs incurred in 2011.

This represents a 12.5 per cent increase on the subsidy provided last year for the airports – Donegal, Sligo, Ireland West Airport Knock, Galway, Kerry and Waterford.

The airports received €4.8 million last year in operating expenditure and €3.4 million in 2009.

The funding is being allocated under the regional airports operational expenditure subvention scheme.

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Earlier this year, Mr Varadkar indicated that from 2012, operational funding would no longer be made available to Galway or Sligo due to budgetary constraints.

Galway had sought funding of €1.2 million for 2012. Aer Arann last month suspended its services from Galway for the winter months. Galway and Sligo also recently lost their subsidised public service obligation (PSO) services to Dublin.

Only Donegal and Kerry retained their PSO routes.

Mr Varadkar has stressed that regional airports were expected to work towards achieving viability over the coming years.

Knock, Kerry, Waterford and Donegal airports will be eligible for operational funding up to the end of 2014, although support during this period will depend on the availability of funds.

This funding covers costs arising from core airport services, but only when these costs cannot be fully recovered from an airport’s own income.

Mr Varadkar is also planning to provide additional capital funding to four of the regional airports until December 2014.

Galway and Sligo have been excluded from this scheme.

The Minister recently received approval from the European Commission to extend the capital expenditure grant scheme for an additional three years.

This will provide €17 million in capital grants to Donegal, Knock, Kerry and Waterford. This funding focuses on safety and security projects.

Grant aid at 90 per cent is provided for projects designed to meet the requirements of the Irish Aviation Authority, and of the Aviation Security Division in the department of transport.

The funding covers a range of projects such as instrument landing systems and other navigational aids and fire-fighting equipment.

Ciarán Hancock

Ciarán Hancock

Ciarán Hancock is Business Editor of The Irish Times