EU permits State aid for Shannon to help start up new routes

THE Government can give State funds to Shannon to help start up new routes from the airport, according to the European Commission.

While the EU generally rules out State aid for commercial enterprises, the case of Shannon is different, Transport Commissioner Jacques Barrot told Fine Gael MEP Colm Burke.

Taxpayers’ money can be used for up to three years to help establish new routes from regional airports such as Shannon, he said.

If the Government makes the case that Shannon Airport is necessary to the economy of the mid-west region, they could provide money for public service obligations, social aid, as well as start-up aid for new routes, the commission said.

“If the Irish Government intends to grant such aid, the commission will assess it on the basis of the rules on financing of airports and start-up aid to airlines departing from regional airports,” Mr Barrot told Mr Burke.

The Munster MEP and former Cork mayor called on Government to make use of the available funds to develop new routes for Shannon Airport and ensure the region continues to prosper.

“As Aer Lingus have withdrawn services from Shannon Airport, I informed the commission of the major economic impact this will have on the area, and of the negative effect on the service, manufacturing and tourist industries of the region.

“I requested that the commission clarify the situation in terms of assistance to airport authorities in such a region in order to encourage industries to stay and to prevent the loss of jobs,” he said.