Rescue helicopter gives boost to regional airport

Waterford's regional airport, struggling to survive, has gained some encouragement, at least, from the news that a new search…

Waterford's regional airport, struggling to survive, has gained some encouragement, at least, from the news that a new search-and-rescue helicopter for the south and south-east will be based there next year. But an expansion of scheduled services, and a modest increase in passenger throughput, are the developments most urgently needed by "the Cinderella of the regional airports", as its manager describes it.

While it continues to have only one scheduled flight a day, to London Stansted, the Waterford facility is severely restricted in its efforts to increase its revenue. "At the end of the day, what keeps the front door open is passenger traffic through it," says the manager, Mr Peter Tawse.

In its strenuous efforts to attract more carriers, the airport company is hampered by what it sees as a major imbalance in the Government supports allocated to the country's regional airports.

It was excluded from the Essential Air Services programme of 1995 to 1997 on the basis that surface transport services between Waterford and the capital were deemed to be adequate. But the substantial supports available through this scheme have enabled other regional airports to offer significant discounts and waivers of airport charges.

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Recent negotiations between Waterford and a new carrier reached an advanced stage but collapsed when it emerged that Cork could offer a package involving zero airport charges for three years and 50 per cent reduced charges for two further years. Kerry regional airport was able to offer Ryanair five years with no charges. Waterford simply could not compete.

On the 29-seater flight to Stansted, Waterford was recording summer figures in November. The demand for expanded services is there, says Mr Tawse, but Waterford cannot increase capacity because it cannot match the subsidised incentives available elsewhere.

"We're looking for a fair share of the State support given to what is a booming business," declares Mr Tawse. The London market is a proven market, and Waterford desperately needs more capacity on that route.

Local business and tourism interests, along with senior executives of multinational companies in the south-east region, have repeatedly stressed how vital it is for future development that the regional airport have more and better regular services.

It was a point recognised by the Taoiseach, Mr Ahern, on a recent visit to Waterford. "Competition between airports is intense, and it is difficult for any small airport to attract additional scheduled carriers," he acknowledged.

Waterford needs practical support in this impasse. The recent Budget announcement that £5 million will be allotted to regional airports for capital works will not address the basic issue.

Whatever Waterford is offered from this tranche will not resolve its key problem of inadequate traffic. On the capital development side, it urgently needs to resurface its 16-year-old runway and extend it by 167 metres to allow modern executive jets to operate there. But the airport will be asked to come up with matching funds to back this investment, and without increased traffic it cannot generate the revenue to achieve this.

The doldrums in which the airport is becalmed are also inhibiting expansion of the few subsidiary, aviation-related companies which have set up there. Keith Furnell has been operating his Shamrock Aviation Services company since 1995, providing a light aircraft maintenance and sales facility.

He could expand if the demand was there, but "scaling up is a matter of staff and equipment. You have to generate enough revenue to pay for skilled staff and equipment," he points out.

He leases a hangar from the airport, and services not only the private light aircraft based there, but also considerable numbers which come from Kerry and Cork airports for maintenance work.

The airport's individual supporters throughout the south-east have invested substantially in its development. The airport company's 1,200 small shareholders have put some £1.6 million into it.

Another threat looming for this regional airport, as for all the country's airports, is the proposal to end duty-free sales, a business that currently provides over one-third of the income of the Waterford facility at present. If duty-free revenue is removed, the airport's management estimates, it would have to increase its charges by about 50 per cent, which would clearly inhibit still further the chances of attracting more carriers.

The arrival of the search-and rescue helicopter will be a minor boost to revenue. More importantly, it should improve the profile of the Waterford airport.