Media Archive

Minister's decision causes serious concern at Galway Airport

Minister for Transport, Tourism and Sport Leo Varadkar TD, yesterday announced additional financial support for the country's regional airports which will be available until the end of the year. Galway Airport is to receive Operational Subvention (OPEX) funding for 2011. The Minister confirmed that from 2012 the Government will not be providing OPEX or CAPEX funding to Galway Airport.

The Minister stated that the provision of funds to the end of 2011 will provide Galway Airport the opportunity to engage with various parties, including business interests, investors and local authorities, with a view to securing the on-going viability of the airport.

Joe Walsh, Managing Director of Galway Airport, while acknowledging the Cabinet decision in relation to OPEX support for 2011, he expressed his complete disappointment and deep concern in relation to the decision of no Government support post 2011.  He says this decision will result in significant negative implications for the City and the region. The decision appears to be based on the Value for Money Review report published by the Department of Transport in January 2011 which was a flawed report and the findings, in relation to the discontinuation of OPEX support for Galway Airport, was rejected by the then Cabinet in February 2011.

 "The decision fails to take account of the economic impact of the airport to the region in relation to enterprise, tourism, job retention and creation and social protection".

"The time line now presented to the airport is unrealistic and insufficient to find a solution to our funding requirements for 2012 and beyond".

Joe Walsh calls on the Minister to revisit the decision to provide a realistic time frame in which to engage with third parties and to provide the necessary confidence in order to allow for the growth and development of our business as a key economic driver to the City and region and as a key employer.

Michael Coyle, Chief Executive Officer of Galway Chamber of Commerce said "Galway Airport has in the past played a positive role in the economic development of the greater Galway area and the West Region, and for many years done so without Government subvention. The country is at the bottom of an economic cycle and Galway Airport needs the financial support of Government through this difficult period. However, as the economy improves Galway Chamber is confident that Galway Airport's dependence on exchequer funding will be greatly reduced or eliminated and on behalf of our members we call on the Minister to take a more positive long term view of Galway Airport as a key component of the economic development of the West Region".

"The Management team, the Board and Staff at Galway Airport have worked extremely hard to create a safe, secure and compliant airport in order to support business activity and job creation. They now need certainty from Minister Varadkar regarding future funding over the next three years in order to achieve the viability that he is now demanding".

ENDS

For further information contact: Michael Moloney, Marketing Manager, Galway Airport @ 086 -6004288

Notes to Editor

• The airport site / facility currently employs upwards of 180 people
  
  
• These jobs result in an annual contribution to the Irish Exchequer of over €2 million
  
  
• 85% of the airport's traffic is international traffic as it provides critical access to international markets and over 400 cities worldwide via its ‘hub' destinations.
  
  
• Galway is the 3^rd most popular inbound tourist destination in the country
  
  
• In 2009 overseas tourism spend in Galway was €266 million  (Failte Ireland Survey of Overseas Travellers / CSO July 2010)
  
  
• The annual tourism impact of the airport on the region is estimated at €19m  (The Case for Galway Airport - Talbot Associates, September 2010)
  
  
• Independent economic analysis has estimated that Galway Airport directly contributes €31 million annually to the region with the indirect impact associated with maintaining access to international markets being far greater
  (The Case for Galway Airport - Talbot Associates, September 2010)
  
  
• ‘Galway Airport, at a relatively marginal cost, supports the location of 10,000 jobs in IDA Ireland, 5,000 jobs in Enterprise Ireland and 2,000 jobs in Udaras na Gaeltachta supported companies involved in international trading'.    (Economic Business Case for Services at Galway  Airport supporting Regional Development -      Community ,Enterprise and Economic Development Unit, Galway County Council ,July 2010)
  
  
• ‘Government policy does not fully recognise the international access role of regional airports and their consequent importance to their respective catchments'.  (Air Access and the Western Region - A Regional Perspective, Western Development Commission,  February 2011)