Supports for competitors to go

AN advantage that other West of Ireland airports have enjoyed over Shannon is set to disappear and it could put their very future at risk.

Last week, Transport Minister Noel Dempsey said a Value for Money Review of Exchequer Expenditure on the Regional Airports Programme had recommended that Public Service Obligations (PSOs) between Dublin and several of the smaller airports should go.
This has potentially huge ramifications and could lead to some of the smaller airports closing.
Speaking last Wednesday, the minister said, “Having considered the conclusions and recommendations of the review, the Government has agreed to support the continuation of a Public Service Obligation (PSO) route between Donegal and Dublin and between Kerry and Dublin. In line with the review, the Government has also agreed to cease requiring PSO routes between Dublin and Sligo, Knock, Galway and Derry, from July 2011 recognising, inter alia, the improvements in alternative transport modes, which have taken place.”
He said cutting the PSOs would make funds available for other areas.
“Alternatives to air services, specifically travel by rail and road, have greatly improved since the Regional Airports Programme began, particularly with Government investment under Transport 21 in recent years. It must also be borne in mind that there are many demands on the Department of Transport and trying to maintain a level of expenditure on the Regional Airports Programme, which is no longer sustainable, would impact negatively on other areas, such as public transport and road maintenance.”
Falling passenger numbers has led to very high subvention costs in recent times, the review found, as much as €170 per passenger at Knock in 2009.
The review also found that transport in the West of Ireland is far ahead of where it once was, while there may not be a need for as many airports as currently exist.
“There is a strong case for rationalisation of the regional airports along the western seaboard. There are substantial overlapping catchment areas between these airports, while the improvements in road and rail means that access from the regions to Dublin, Cork and Shannon is more speedy and reliable than 10 years ago,” it stated.
The removal of further supports is likely to have serious consequences for certain airports, it found. “Without operational expenditure subvention support (Opex), Sligo and Galway airports are unlikely to operate scheduled services but there is adequate airport capacity elsewhere in the hinterlands to compensate for the ending of these services.
The withdrawal of PSO services will still leave the West of Ireland with adequate air service connectivity at the State airports and at Knock and Kerry.
It also found there are an excessive amount of airports in a relatively small area.
“There is significant potential to rationalise the number of regional airports, particularly those on the west coast. To continue to support three airports (Sligo, Knock and Galway) in close proximity to one another does not make sense, particularly where travel times by other modes have reduced over the last five years.
“Of the three airports in the region, Knock has the greatest potential to grow, attract airlines and increase routes, thereby improving connectivity to the region. It is also the only one of the three that has a runway capable of accommodating B 737 jet aircraft (or its equivalent). It has the largest existing passenger base and serves the largest number of routes with the largest number of airlines operating services from there.”
While Shannon Airport has not commented on the findings, Mayor of Shannon Tony Mulcahy said he felt it is good news. “The road and rail infrastructure has radically improved and I think this is the right call,” he added.
Shannon Town Councillor Sean McLoughlin raised the issue in the past and he is pleased to see advantages that weren’t available to Shannon being removed.
“I was on about them (PSOs) for a long time and I would have liked to have seen Shannon included but now the playing field is being levelled to some extent,” he commented.