Regional airports get core services funding boost

More than €2 million in funding is to be given to regional airports to compensate them for costs incurred in providing core services that cannot be fully recovered.

The approved funding brings the total financial support by the Exchequer under the Regional Airports Programme to just under €13 million in 2014.

Minister for Transport Paschal Donohoe said the funding is to cover so-called "subventible losses," that is costs for services that can't be recovered from non-core income coming from activities such as restaurants, bars and parking.

Under the Regional Airports Programme, which is due to end this year, financial support has been provided to Kerry, Knock, Waterford and Donegal airports under three main schemes, including the Public Service Obligation Scheme, which provides funding to airlines to operate essential services.

Earlier this month, Mr Donohoe confirmed that regional air services from Donegal and Kerry to Dublin would continue to be subsided under the PSO scheme. Stobart Air, the former Aer Arran, was awarded the contracts to operate the two routes until 2017. It currently runs the Kerry to Dublin-subsidised service while Loganair operates the Donegal route.

The Regional Airports Programme is due to end this year and the Government has submitted a new proposal for a replacement scheme to the EU commission for consideration.

‘The Government’s aim is to give regional airports the opportunity beyond 2014 to grow to a viable, self-sustaining position, particularly considering the contribution that they make to their regional and local economy. As a result, Exchequer support for the four regional airports will be continued beyond 2014,” said Mr Donohoe.

“The decision to continue providing these necessary supports will facilitate the airports in developing and implementing new business plans leading to self-sufficiency within a ten year period. Central to these will be the need for regional and local business investment,” he added.