Ryanair has called on the Irish government to raise the passenger cap on its Regional Airports Program to allow airports to increase traffic while still benefiting from financial assistance.
Currently, only airports with fewer than 1 million passengers per annum qualify for capital and operational funding under the scheme, which supports Ireland’s smaller airports.
Ryanair argues that this limit should be increased to 2 million passengers per annum, providing airports with an incentive to increase traffic and thereby promote tourism, jobs, and economic growth. The ULCC contends that the existing cap contradicts Ireland’s National Aviation Policy.
“It makes no sense that regional airports are being penalized for growing tourism and delivering economic benefit to the regions,” Ryanair DAC CEO Eddie Wilson says. “There is no incentive for regional airports, such as Knock, to grow beyond 1 million passengers per annum.”
Ryanair said it aims to invest more than $1.6 billion in Ireland’s airports, intending to double traffic at Cork, Kerry and Shannon, and establish a base at Ireland West Airport Knock. However, Wilson warns that this potential growth is hindered by the current cap, which would cause regional airports like Knock to lose government funding if exceeded.
Cork Airport handled 2.8 million passengers in 2023, while Ireland West, Kerry and Shannon airports had passenger counts of 813,000, 414,000, and 1.9 million, respectively.
Ireland’s Regional Airports Program 2021-2025 awarded more than €11 million ($11.9 million) in December 2023 to Donegal, Kerry, Ireland West, and Shannon airports, bringing the total funding provided to regional airports to €28 million for 2023.
In a mid-term review of the scheme, published on July 16, the Irish government said the program was “delivering on its objectives and is in line with Ireland’s National Aviation Policy.”
However, it acknowledged that it would consider extending support on a temporary phased step-down basis for airports forecasting growth beyond 1 million passengers under any future program beyond 2025. It said this would prevent a sudden loss of eligibility when surpassing the current 1 million passenger threshold.
Additionally, the review noted that there should be “detailed analysis” undertaken to broaden the scope of the scheme to include airports with more than 1 million passengers. It also said a €4.2 million Regional State Airports Sustainability Program would be launched to support Cork and Shannon airports’ sustainability plans.
“I am pleased to see the continued growth in connectivity across our regional airports this year with passenger traffic to end June being 9% higher when compared with the same period last year,” transport minister James Lawless said. “With a view to further enhancing regional connectivity, I have asked my department to undertake a consultation process with relevant stakeholders to consider the potential for the development of a start-up aid Scheme for airlines, to further support new strategic route development to and from our regions.”
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