Media Archive

A delegation from Galway Airport and Galway Chamber of Commerce met recently with Connaught-Ulster MEPs and the European Commission to discuss the Irish Governments proposals to cut funding to the airport.

Speaking today, Galway Airport Managing Director Joe Walsh said:

 "We are very encouraged to hear from the Commission that the Government will not be violation of any EU legislation by continuing to provide funding for the PSO route to Dublin.  We received clear assurances from the European Commission that if the Irish government believe there to be an economic case for the continuation of the PSO, then Europe will not interfere in the process. This is a major step forward as the Irish government previously feared that the EU would be an obstacle to the renewal of the PSO "

Any reduction in the funding Galway Airport receives would have a dramatic impact on the Galway region and the West of Ireland's ability to maintain current levels of foreign direct investment as well as attract new multinational corporations to the region.

There are upwards of 15,000 people employed in manufacturing in 45 overseas companies in the Galway area. These include large blue-chip employers such as Medtronic, Cisco, IBM, SAP, Oracle, Hewlett Packard and Boston Scientific.  Many of these companies have already stated publicly that major changes to the availability of flights to hub airports such as Dublin will negatively impact current and future investment decisions.

Airport Chairman, Michael Corless added "Our meetings in Brussels were extremely positive and I must thank the three Connaught Ulster MEPs for their continuing support to Galway Airport. Now that the Brussels involvement has been cleared up, the Irish government can concentrate on taking decisions for the right reasons, the continued growth and economic wellbeing of the Galway Region."

The President of Galway Chamber, Paul Shelly welcomed "that the importance of connectivity for business and tourism is recognised by the European Commission.
We have an economic case here in Galway and we are confident in Government continued support in this critical piece of infrastructure. Any negative decision could have a potentially damaging effect on Galway's future development." 

Galway Airport have written to the Minister for Transport to seek a meeting to discuss these matters, reflect on the airports achievements to date and explore opportunities for Galway Airport including its role as a service of general economic interest (SGEI).

ENDS

Notes to Editor

Galway Airport Current Level of Funding

The indirect funding Galway Airport receives is through the PSO subvention, which supports the provision of three daily flights to Dublin, and was worth approximately €1.3 million in 2009 (€1.56 million 2008).

The direct funding is through the Operational Subvention (Opex).  This was valued at €962,000 in 2009 down from €1.2 million in 2008.

Galway Airport & Employment

Galway Airport maintains and sustains 175 people in direct (60 jobs) and indirect airport based employment (115 jobs).  The associated employment taxes alone amount to approximately to €2.0m, a sum comparable to the overall level of support received by the Airport in 2009.

Galway Airport's overall level of Government support (direct and indirect) for 2009 was €2.26 million (2008: €2.76 million).

The IDA in their yearend statement of 2009 stated that "IDA supported companies directly employed c.136,000 people and also accounted for €110bm or 70% of total exports.  These companies were responsible for €19.1bn in direct expenditure within the Irish economy comprising €7.1bn on Payroll, €9.7bn on services and €2.3bn on materials from Irish sources."   It has been a successful policy of the IDA for several years to develop a hub for the life sciences industry in the region.  The airport is integral to this.

A loss of just 60 jobs, for example, in the strategically vital medical technology and ICT (Information, Communications & Technology) sectors in Galway would have a threefold affect:

1.       Loss of direct employment to the community as well as the associated taxes to the Government

2.       Loss of indirect employment to the community as well as the associated taxes to the Government

3.       Government payout of statutory redundancy mitigation to the employer as well as the annual unemployment benefits and supports

Galway Airport & Connectivity

On average 40% of all passengers on the Galway Dublin service are connecting onwards or inwards through Dublin Airport. Of the remaining 60% of the passengers who use the service for point to point access between the two cities, two thirds of the inbound passengers are travelling to Galway on business. 

Four out of five of the respondents to our recent business and industry surveys state that air access to Galway is important or essential to their business.

Service of General Economic Interest' (SGEI)

Services of general economic interest (SGEI) are a legal category in the EC Treaty that are designed to allow national Governments offer financial assistance to services deemed vital for the common good, but who are unable through normal market conditions to continue operating profitably. This assistance ensures a quality service is provided at an affordable price to the general public.