REGIONAL AIRPORTS in Galway, Sligo and Waterford are facing closure next year following a Government decision not to shore up their mounting losses.
Minister for Transport Leo Varadkar is to inform the airports shortly that he does not have sufficient funds to continue subsidising their operations, and that whatever financial support he can raise within his department will go to other airports which are regarded as being closer to viability.
Of the remaining regional airports, Knock and Kerry airports are close to break-even, while Donegal is also regarded as viable.
However, all three will be told to cut costs further if they want to survive.
The subsidies being sought by the six regional airports are much greater than the money available in the budget, the Minister confirmed last night.
“I’m looking for solutions that will provide some of this money for this year, but clearly it will not be a case of business as usual,” he said.
A memo circulated to Government departments this month argues that Ireland is now over-provided with airports because of improved road networks and the economic downturn.
It points out that the cost of running small airports has increased considerably because of more stringent security requirements.
Operational and capital expenditure at all six regional airports is heavily subsidised, and the Government also supports public service obligation (PSO) routes from the airports to and from Dublin.
PSO routes are not viable commercially but are considered vital for regional economic development.
However, from July only one PSO flight, the Donegal-Dublin route, is being supported.
This year the six airports have submitted requests for capital spending support totalling €4 million, twice the amount available from the department. The support requested for operating subsidies comes to €7 million, far greater than the €500,000 available.
Mr Varadkar has said he cannot reverse the cutbacks in the regional airport budget agreed by the last government, although he has undertaken to seek funding from other parts of his department.
However, this funding is unlikely to cover more than a fraction of the sum sought and applies only to this year.
It is believed the Minister intends to concentrate any available support on the airports he sees as having a better chance of survival, Knock, Kerry and Donegal.
The Government is keen for the remaining airports to refocus their business models away from commuter services for passengers by seeking other work.
Although closure is not regarded as inevitable, it is hard to see how commuter services can continue without an exchequer subsidy.
Subsidies at the airports range from €20 per passenger at Sligo, to €15 at Waterford and Galway, and €2-3 at Knock and Donegal.
