Re: Re: Airports; how many state subsidised airports are required in Ireland

Home Forums Ireland Airports; how many state subsidised airports are required in Ireland Re: Re: Airports; how many state subsidised airports are required in Ireland

#783053
Anonymous
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@Frank Taylor wrote:

This document has a review of the subsidies to regional airports
http://www.transport.ie/upload/general/4803-0.pdf

including the amazing susbsidy of €560 per Knock-Dublin return trip.

Again to be pedantic, but I believe it’s an important distinction, the subsidies are paid to the airline, not the airport. The airport gets the same amount per passenger as if it was a “normal” unsubsidised service. However, the airport does make money in two main ways which in effect drive the subsidy amounts:

1 – If there was no subsidy on the route, it would probably not exist (the report indicates only Kerry would be able to retain a somewhat scaled back route to Dublin without subsidies). Therefore, the airport is receiving passenger and handling charges from passengers who would not otherwise pass through
2 – Many of the subsidised routes operate early morning and late evening sectors to facilitate business travellers and connections (although the report indicates the importance of connections is exagerated). These timings are classified as “out of hours” times, for which the airport charges are vastly higher.

It does show where the subsidies get crazy though. €560 is difficult to justify on any grounds. A more reasonable subsidy could be justified on broader economic grounds such as time savings. The authors note this but add that as the average wages in Ireland are €10-15 per hour the direct user benefits of time can only account for a small portion of the subsidy amount. One flaw in this reasoning is that those who regularly fly for business purposes would have a significantly higher “wage per hour” rate and this would change the “value” of the time saved.

Common sense would suggest though that a 3/4 hour hop from Farranfore is infinitely more preferable to a 5hr 40min bus ride from Dublin to Tralee? What level of subvention, if any, for that route is a much more difficult one to decide on.

On the Shannon marketing fund….Cork must pay for the bulk of it’s terminal (while Shannon has one built for it) but when thing’s don’t go their way in Shannon, it’s out with the hand again!? €53m is a ridiculous sum of money for a desperate plan,

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