Airport subsidies - Cuts a riskto regional development

The future of regional airports is being put in doubt as a result of the Government’s decision to consider cutting subsidies as part of the €3 billion savings required in the December Budget.

Transport Minister Noel Dempsey has strongly indicated that routes will be axed, based on a recent report on the Value for Money Review of Regional Airport Policy.

The Government will be considering Colm McCarthy’s suggestion in his Bord Snip report of last year that abolishing the €2 million operational grants for airports and the €15m provided through the Public Service Obligation (PSO) routes was a means of saving money. He argued that the “continued support of loss- making air services is unsustainable”.