Irish aviation policy 'failed to create level playing field,' says Shannon Airport report

The report found the regional airport employed more than 20,300 people but was not provided enough aid by the Government

Fri, 10 Nov, 2023 - 14:43

Emer Walsh

A new report has found an uneven playing field across Ireland's airports with regional locations at a disadvantage, despite Shannon Airport contributing almost €4bn to Ireland's gross domestic product.

Published on Friday, the report, produced by advisory firm Oxford Economics, noted Shannon's "significant positive impact" of the group, adding that it has had "catalytic benefits" on several sectors of the economy including tourism, trade and connectivity.

It also found that the group was responsible for more than 20,300 jobs along with tax revenues of €643m.

Its impact has also been outlined in several testimonials included in the report, from organisations including Northern Trust, Ei Electronics, Jaguar Land Rover, Chambers of Commerce, University of Limerick, and IDA Ireland.

Commenting on the findings, Neil McCullough from Oxford Economics and one of the report’s authors said that while the Shannon Airport Group makes a major economic contribution to the Mid-West region and Ireland, the country's aviation policy has "to date, failed to create a level playing field for Ireland’s regional airports to flourish."

"Given that airports can drive regional growth, and that Project Ireland 2040 aims to rebalance growth across Ireland, there is a strong argument for providing state aid to Shannon Airport."

Speaking at the airport on Friday morning, Minister of State at the Department of Transport, Jack Chambers said, "the Government recognises the impact The Shannon Airport Group has as a major economic driver for the region in attracting both FDI and indigenous business, along with providing vital air connectivity for the Mid-West and beyond."

As a result, the report has provided several recommendations, including calls for the Government to update the Irish Aviation Policy to help it achieve long-term growth targets set out in Project Ireland 2040, as well as supporting a review into its decision to exclude regional airports above one million passengers from state aid within the Regional Airports Programme.

In addition, the report also called on both the Government and tourism boards to further promote Shannon Airport as the gateway to the Wild Atlantic Way, with ease of travel "a clear aspect" that differentiates Shannon from that of Dublin, which is more prone to congestion.

“Shannon has a key role to play in rebalancing Ireland’s aviation landscape, alleviating the congestion at Dublin Airport and delivering balanced regional development for our country," Mr Chambers continued.

"This report is a very useful reminder of the contribution which The Shannon Airport Group is making in terms of jobs and investment and its recommendations give us a lot to consider.”