Euroceltic have confirmed that they are ending services from Waterford. They have done so much damage that they will now finish up early January - Passenger bookings are zero.
-----------------------------------------------
Embargo: 2pm, 16 December, 2002.
South East Regional Airport prepares to lay off 22 employees as Euroceltic Airways withdraw from Waterford
The board of the South East Regional Airport at Waterford today announced that protective notice has been issued to its 22 employees due to the airport’s uncertain financial future as a result of the decision by Euroceltic Airways to withdraw its services from Waterford with effect from January 26, 2003.
The helicopter search and rescue service operated from the airport by CHC on behalf of the Irish Coast Guard is also in doubt today due to a lack of funding to provide back-up staff and services.
Nicholas Fewer, chairperson of the company which runs the regional airport, said it was with deep regret that the airport employees were being given protective notice today in the run-up to Christmas but because the finances are not in place to continue operating the airport safely and to acceptable standards, the board had no other option.
Mr Fewer has also informed Captain Liam Kirwan of the Irish Coast Guard that the cost to the airport of the necessary cover to provide back-up for a 24-hour service, which was to come into operation in January, could not now be met.
Euroceltic Airways announced its decision to pull out of Waterford last week. The airline, whose majority shareholder is Noel Hanley, had hoped to attract 40,000 passengers to its Luton service this year which would have allowed it to break even on its operations. A total of 31,000 passengers will be achieved, which is a tribute to the commitment and hard work of all concerned, but not enough to make it a viable proposition for Euroceltic to continue to operate out of Waterford.
“During the last decade, every regional airport in the country was developing but it is very significant for us that only five out of the six regional airports were being subsidised directly and indirectly through the introduction of Public Service Obligation (PSO) routes,” said Mr Fewer. “Waterford was always excluded and is still excluded. This decision alone has meant that the airport is not financially viable.
“The South East Regional Airport did receive €410,000 from the Government as a marketing grant this year as did the other regional airports but our minimum running costs are more than twice that. With the loss of Euroceltic and this marketing grant, we would need more than €800,000 to stay open and provide the level of manpower and services which are required.
“The five other regional airports received the vast bulk of the €29 million in subsidies which were paid this year,” said Mr Fewer. “Neither the South East Regional Airport nor Euroceltic Airlines can continue to provide essential services from Waterford while running up substantial losses.
“I sympathise with our employees who are facing a very uncertain future at a particularly bad time of the year. I am also very disappointed for Euroceltic and the business community in the region whose efforts to attract increased investment will be hampered by this decision and the south-east’s other well-documented access problems. I am also sorry for the people of the region who deserve better transport facilities but I can assure them that the Board members and I have done everything possible to avoid the current situation.
“We will continue to make every effort to keep the airport open but, as of now, the outlook is very bleak indeed,” concluded Mr Fewer.
ENDS – December 16, 2002.