Cork Airport to receive €1.4m to help compensate for impact of Covid on business

Cork Airport has been allocated €1.4 million in funding to help compensate for the damage caused by Covid to airport business last year.

The announcement was made today by Minister of State at the Department of Transport, Hildegarde Naughton.

Last November as part of an €80 million package of supports that was announced for Irish aviation, the Government gave a commitment to securing EU approval for a €26 million scheme to help compensate airports for the damage caused by Covid. 

Of this amount, €20 million is being provided to State airports – Cork, Dublin and Shannon – in line with a measure under Article 107(2)(b) of the Treaty of the Functioning of the European Union (TFEU). 

This measure is compensating airports for a portion of the damage caused by Covid to airport business in the period April 1, 2020 to June 30, 2020.

The remaining €6 million is being provided, in two phases, to the airports of Ireland West (Knock), Kerry and Donegal under sections 3.1 and 3.12 of EU’s Temporary Framework for State aid measures to support the economy in the current emergency of Covid-19. 

Almost half of this amount, which relates to losses in 2020, is being announced today. 

The remainder is set to be disbursed in December following an assessment by the Department of Transport of eligible losses in the current year to end 2021.

Announcing this funding, Minister of State Naughton said: ‘I am pleased to be in a position to announce a total of €20m in funding to our State airports – Dublin, Cork and Shannon. 

"The funding has been allocated on a pro-rata basis with reference to passenger numbers in 2019.

"This important funding is being provided ahead of a return to international travel on July 19. 

"I am hopeful that this funding will go some way towards aiding the recovery process in the aviation sector. 

"As travel restrictions begin to lift, I am also hopeful that this funding may assist in restoring connectivity by affording our State airports greater flexibility in their capacity to offer route incentives, in consultation with airlines."

She added that Cork and Shannon airports are also eligible for funding under the Covid-19 Regional State Airports Programme, with a total budget of over €32 million in 2021. 

"In fact, earlier this week, as part of this Programme, I announced €10 million in Exchequer funding for a significant runway reconstruction project at Cork Airport," she said.