WATCH: Government accused of failing to provide 'level playing field' for Shannon Airport

A NEW REPORT has recommended that the Government reconsiders its decision to exclude Shannon Airport from state aid rules to ‘level the playing field’.

The economic impact report, published independently by Oxford Economics, warns that a policy of “excessive reliance” on a single airport (Dublin) can result in a concentration of economic growth in a defined region, which could be to the detriment of the wider economy.

A list of recommendations has been set out on how the Shannon Airport Group can ‘maximise contributions’ to the Mid-West economy, based on its recent findings.

The findings indicate that while Shannon Airport contributes almost €4bn to the Irish economy and supports over 20,000 jobs, the Government can do more to increase the regional airport’s economical contribution, such as promoting the airport as a gateway to the Wild Atlantic Way.

As well as this, it is recommended that the Government could widen state aid rules to include regional airports handling more than one million passengers.

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“Shannon has a key role to play in rebalancing Ireland's aviation landscape, alleviating the congestion at Dublin Airport and delivering balanced regional development for our country,” said Minister of State at the Department of Transport, Jack Chambers TD.

Mr Chambers continued by saying that while the report is a “useful reminder” of the contribution which The Shannon Airport Group is making in terms of jobs and investment, the recommendations give the Government “a lot to consider”. 

An update of the Irish Aviation Policy from 2015 has also been recommended, in order to help airports such as Shannon to achieve its long term growth targets set out in Project Ireland 2040.  

“Given that airports can drive regional growth, and that Project Ireland 2040 aims to rebalance growth across Ireland, there is a strong argument for providing state aid to Shannon Airport,” said Neil McCullough from Oxford Economics.

“There is strong evidence that airports can have a positive impact on local and regional economies and Governments are recognising the benefits of having a balanced aviation sector. 

“If a country has an excessive reliance on a single airport, it can concentrate economic growth and any disruptions could cause a significant impact on the tourism sector, as well as the economy as a whole,” Mr McCullough explained.

Promoting the airport as the gateway to the Wild Atlantic Way, the report concludes, would help to differentiate Shannon from that of Dublin, “which is more prone to congestion”.

Welcoming the findings of the report, Mary Considine, CEO of The Shannon Airport Group said: “The report gives us a comprehensive assessment of the economic contribution that The Shannon Airport Group makes to the Mid-West region and Ireland’s economy in 2022, in supporting businesses and livelihoods, at a time when we were building back after the pandemic. We welcome the report’s findings and recommendations, which ultimately highlight what we have achieved and can further achieve with the right policies and supports in place.”