Cork Airport executive asks for more State aid to realise expansion dreams

CORK Airport could expand massively in the years to come if Irish state aid rules were harmonised with EU law on funding for regional airports, according to its manager.

Its managing director Niall MacCarthy, addressed a joint Oireachtas committee on transport and communications on Wednesday.

Mr MacCarthy asked that the eligibility threshold for state aid on regional airports in Ireland be aligned with the EU norm, thereby providing access to the programmes funding for all airports in the State that cater for less than three million passengers annually.

Cork is considered a regional airport under EU law as it handles less than three million passengers a year.

“That has been transposed differently into Irish law as one million passengers per annum,” said Mr MacCarthy.

“Ireland is using a lower threshold to define a regional airport than the EU allows. That means that the State can’t invest in infrastructure in airports beyond a million because it would be breaking its own law. Its laws are out of kilter with the EU.”

Mr MacCarthy said the Government cannot subsidise all new ventures at the airport, but it should keep its options open in relation to projects it wants to incentivise. “For example, we will be developing a solar farm next year. That is to reduce our energy bills by 30%. That is a valid thing for the State to take an interest in, in relation to decarbonising our economy, and meeting the State’s own targets,” he said.

If the State sets an eligibility limit of 1m passengers, it won’t be able to incentivise these projects at Cork Airport. “Not all capital expenditure is purely economically viable for a smaller airport,” he said.

“If you borrow money, and pay interest rates which are rising, along with construction costs which have risen hugely, it’s very hard to make a business case for a smaller airport. If they just aligned the Irish regulation with the EU regulation; they shouldn’t close the door on being able to invest in regional airports.”

Last year, Cork welcomed 2.2m passengers. This year, that figure is set to rise to 2.4m or 2.5m passengers and could exceed 3m passengers in two to three years, said Mr MacCarthy. “It is a narrow enough window but it would be crazy for the State to close that window.”

Mr MacCarthy thanked the Government for its “immense support” during Covid. “We got support on our runway reconstruction. We got support on our whole baggage screening project, which is the one that screens the cabin baggage. We got support on our electrical substation, which is due to be finished in May.” In normal times, before Covid, these supports would not have been available.

Over the next few years, the State could work with Cork Airport to assist in the development of its infrastructure if it harmonised its rules with the EU, stressed Mr MacCarthy.

During the Oireachtas meeting, Sinn Féin Transport Spokesperson Darren O’Rourke TD, asked the representatives of the five airports present — Kerry, Donegal, Ireland West, Shannon and Cork — what single initiative they wanted.

Mr MacCarthy said: “Don’t lock yourself off from being able to support us — either operationally or infrastructurally — for the next two or three years, because the market is very unstable at the moment.” If Cork Airport wasn’t locked out of these funding streams, “we would continue to grow strongly, add to our route network, and improve the infrastructure,” said Mr MacCarthy. “To us, it’s a knock-out argument. Just harmonise the State aid rules.”