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West airports warn as subsidies end

Knock Airport - PSO to end from July
Knock Airport - PSO to end from July

Management at Galway and Knock airports say the loss of government subsidies to help them operate will have a severe impact on local business and jeopardise jobs.

Transport Minister Noel Dempsey said improved rail and road services had led to the decision to withdraw public service obligation (PSO) contracts for several regional air routes.

He said the Government was acting on the recommendations of a value for money review on the use of state funding for regional airports.

The financial incentives to encourage airlines to fly from Dublin to regional airports in Galway, Knock, Sligo and Derry are to be cut from July. The PSO routes will remain only on the Dublin-Kerry and Dublin-Donegal routes.

In statements issued today, management at both Galway and Knock airports said the scrapping of PSO services was at odds with the Government's vote of confidence in regional airports just before Christmas.

Last December, Minister Eamon O Cuiv welcomed the announcement by Minister Noel Dempsey, of the allocation of extra funding for Galway Airport. This subvention is paid to regional airports to cover day-to-day running costs.

Ireland West Airport Knock welcomed recommendations in the Government's value for money review published yesterday, where further exchequer supports were promised to help improve infrastructure and business development.