Uncertain future for Galway Airport

THE future of Galway Airport is in doubt following a Department of Transport report on achieving value for money in regional airports.

The report recommends that operational expenditure subvention (OPEX) for Galway should end, while payments for Public Service Obligation service to Galway are also to end.
According to the Department of Transport Report, Galway Airport had 194,158 passengers in 2009, almost one quarter of which were PSO passengers. The PSO subvention on the Galway-Dublin route was €3.29 million or €68 per PSO passengers.
The report shows the PSO per passenger figure has increased by 70% since 2007, while the number of PSO passengers has halved in the same period.
The fact that Galway is now less than three hours from Dublin by road and rail has implications for the PSO service under EU regulations, the report stated.
It stated the OPEX funding to Galway has been increasing. “In line with decreasing passenger numbers, Galway Airport has also been receiving steadily increasing OPEX subvention in recent years.
This trend continued until last year, when a major cost-cutting scheme by the airport meant that losses sustained were minimised somewhat. However, they still amounted to approximately €962,000, which mean that significant subvention was still required to achieve a break-even position.”
It also found that Galway has consistently lost money. “Despite having the benefit of a PSO route, Galway Airport was still not breaking even during the height of the economic boom. Further losses along the lines of what were sustained in 2009 are to be expected in the short-term at least.”
The report also stated, “Any cuts to the subvention allocation below the required amounts would be difficult to achieve without serious retrenchment of current operations at the airport”.
In a statement, Joe Walsh, MD of Galway Airport, criticised the report. “I want to express my disappointment and concern in relation to the Department of Transport’s report on the Value for Money Review of Exchequer Expenditure on Regional Airports Expenditure Programme and the lack of relevant and accurate detail pertaining to Galway Airport. Generalised and unsupported statements have been made in the report and are being challenged. The report ignores Galway as the location of the third largest population centre in Ireland with employment in excess of 40,000 and home to key clusters of both life science and ICT industries, who require access to international markets.”
Galway Airport chairman Michael Corless said the report is inaccurate. “On behalf of the board, management and staff of Galway Airport, I express concern with regard to the minister’s announcement and that it is unfortunate that the necessity for the continued existence of Galway Airport has not been fully understood or taken into account in the Value for Money Review of the role of Galway Airport.
“The report is out of date and contradicts the clear messages of support obtained from the development agencies, IDA, Enterprise Ireland and Údarás.”
The airport is hugely important for business, according to Carmel Brennan of Galway Chamber. “Galway Airport is a business airport and its existence and survival is critical for the future of the region as it makes an important contribution to supporting and creating jobs in Galway,” she said.