The campaign to have Sligo Airport reinstated in the Public Service Obligation subsidy scheme has been lost, with the result that Aer Arann are to cease flights to the local airport from July 21st.
Both the airport management and Minister for Small Business, John Perry now concede that the Public Service Obligation contract, which has already been extended for Donegal and Kerry airports, will be withdrawn thereby throwing the future of Sligo Airport into jeopardy.
Manager of Sligo Airport Mr Joe Corcoran said: "All options are being looked at to see what alternative areas of funding are available. No stone will be left unturned.
Mr Corcoran went on to say that "the Department of Transport, the Irish Aviation Authority and the airport board will have to agree terms if an alternative funding package is to be found". "Everything will be on the table in these discussions." he said.
Local politician Mr John Perry said he will be looking for a direct subsidy to be paid to the airport, to replace the Public Service Obligation subsidy that was paid to Aer Arran, the airline that currently operates to route to Dublin.
The Public Service Obligation's are subsidies paid to airlines to operate unprofitable routes to regions in rural Ireland, with Aer Arann, the airline servicing Sligo, Derry, Galway and Knock airports for the last ten years, having received €108 million in the last six years to continue these services nationwide, during which time Aer Arann have carried a total of six million passengers.
This ruling will spell disaster for tourism in the whole western half of Ireland and for the Sligo region in particular, as without the subsidies Aer Arann will no longer be able to provide flights to most of these airports.
This will have a knock-on effect of possibly forcing Aer Arann out of business, AND, to force the board of Sligo Airport to lay off staff at the airport, perhaps even forcing the complete closure of the airport as a going concern.
