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06/08/2008

€13m Cut From Airport Infrastructural Fund

The Irish Transport Minister has slashed €13 million from the budget allocated for infrastructural improvements at regional airports.

Noel Dempsey's latest announcement is expected to deliver another blow to the aviation industry, which is already battling rising fuel costs, environmental penalties and a slow down in demand.

The sector, traditionally dependent on state aid, has also come under fire from Ryanair boss Michael O'Leary, who has insisted four of the country's regional airports have no future.

Addressing an Oireachtas committee, the airline Chief Executive said Donegal, Sligo, Galway and Waterford airports are under threat.

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"Ireland has more than a sufficient number of airports with Dublin, Cork and Shannon," said Mr O'Leary.

The Ryanair chief is not the first to have voiced concern about the number of Irish airports servicing a population of only 4.2million.

Industry commentators have suggested such a small country cannot sustain so many airports, particularly as a majority of them have overlapping hinterlands.

"Sometimes one just has to get over the fact that we live in a lightly populated BMW (Border, Midland and Western) region that cannot support international air services," advised Mr O'Leary.

His claims are supported by the fact Knock is within 70km, or one-hour drive, of both Galway and Sligo.

It is also suggested Cork is now competing equally with Shannon, Kerry and Waterford for business.

Fears in the market have also been fuelled by the notion that the government has lost its appetite for supporting routes between Dublin and other Irish regions.

(PR/JM)

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