Waterford Airport insists State investment is ‘value for money’ as costs soar to over €27M

There are now fears the spiralling airport controversy could become a general election issue for the three Coalition parties across five counties in the south east.

Transport Minister Eamon Ryan insisted that the proposal submitted in favour of Waterford Airport's development was "not a business plan".

Mr Ryan said that while he was in favour of Waterford Airport development, a detailed business package had to be submitted to support it.

"What is presented isn't a business case," he told WLRFM.

"If it is to proceed, they have to present a much more detailed business case. That takes into account some of the questions that the Department is asking. We do need to get things right. We have to make sure that if a project goes out, if you're giving public land across, if you're giving public money - you do have to make sure that the public benefits and that it is a viable and realistic project that does good for the region rather than end up not delivering and disappointing people."

Independent TD Matt Shanahan claimed that Waterford Airport was caught "in a vice-like grip" with State officials who do not want to see it actively compete for business with Dublin and Cork airports.

"We are talking about private investment in the airport that only requires public support of €7m - the city and the region needs this," Mr Shanahan said.

Waterford Airport officials met with Junior Transport Minister James Lawless following the controversy over the Government's demand for further information on the airport's business case - a move that dashed hopes of the airport reviving commercial flight operations for the first time in eight years.

The Government raised concerns over the spiralling cost of a business package with projected investment having more than doubled in five years.

Mr Lawless has sought further information on the Waterford Airport package after expressing concern over aspects of the deal - and the fact that its costs had soared from €12m to over €27m.

He insisted the Government remain committed to the re-opening of the airport to passenger services.

"I understand the importance of connectivity to the southeast region and I am actively considering the Waterford Airport proposal in this context. I want to give this project the best possible chance of success," he said.

However, Mr Lawless stressed that matters of concern have arisen - and warned that some key points about the Waterford Airport redevelopment are not within the original business case submitted to the Government.

"The project costs have increased substantially above the original estimated cost of €12m to €27m, deviating significantly from the airport's proposal in 2019.

"Under the public spending code, the project can only be assessed under the business case already presented, and unfortunately, some key points now being argued are simply not contained within the business case."

Mr Lawless said he supported regional airports and wanted to see enhanced connectivity outside Dublin.

"However the project can only be assessed based on the information supplied and I have a duty to perform rigorous scrutiny of all proposals which involve tax payers money."

Mr Lawless said that while he understood regional demands for a runway extension, the fact remained that Waterford is currently in a position to operate scheduled passenger services.

"The existing runway can facilitate propeller plane services which are successfully operated at other airports currently including, for example, on services operating out of Donegal, Kerry, Cork and Dublin airports to the UK and France."

However, the further delay prompted outcry in Waterford where political and business leaders said the airport, just like the region's new university, is key to future economic growth.

Opposition politicians said the delays over the airport investment package underlined "a lack of political clout" for the south east.

Waterford Airport officials insisted their business package was detailed and effective.

Major airport shareholder William Bolster said it was "unfair" the way in which the business plan costs had been depicted.

He said that inflation since 2019 had to be taken into account - while significant design and upgrade changes also had to be made to meet the requirements of Irish aviation authorities.

"Our position is that this investment offers incredible value for money, not just in terms of what it delivers at Waterford Airport but also its benefit for the economy of Waterford and the entire south east," he said.

Mr Bolster has spoken to Mr Lawless on the matter and said he remained hopeful that the transformative package for Waterford Airport can be achieved.

He insisted a detailed case was put to the department - and that every question raised was answered in detail.

Waterford officials had hoped a London route could be launched for 2024/25 if Government approval was confirmed for a business plan and related investment.

The airport is now the focus of a proposed €30m development plan which will see the Government match a €12m private sector investment.

Waterford's last scheduled commercial services were in 2016 with VLM Airlines.

Last December, then Taoiseach Leo Varadkar and Finance Minister Michael McGrath launched a private sector investment package which aimed to revive the airport's commercial aviation operations.

A key element of the plan was to be a runway extension to allow high-efficiency short-medium haul jets to service routes from Waterford.

The Comer Group International confirmed it would invest €12m in Waterford Airport, in partnership with the Bolster Group, with the Government poised to provide matching funding as a strategic support for the south east economy.

However, the Government is now seeking clarification on key issues surrounding its supporting investment - and the airport business plan.

It was hoped that the overall investment package for Waterford Airport - which is also backed by local authorities in the south east - could exceed €30m.

In its final year of commercial flight operations, Waterford handled 13,511 passengers.

This was more than 7,000 smaller than the total number of passengers handled by Connemara Airport which is primarily focused on servicing routes to the Aran Islands - and almost half what traffic Waterford handled in 2003.

Waterford Airport's most successful period was 2003-2012 when Aer Arann/Aer Lingus Regional was its primary route operator.

The airport's best year for passenger operations came in 2008 when it handled 144,000 passengers. It last handled more than 100,000 passengers in 2010.

Under the investment project, which was first outlined in 2019, Waterford's runway was to be extended to 2,287 metres.

The current runway length is 1,433 metres.