76. Airports in Northern Ireland have grown rapidly over the last few years with the two Belfast airports providing both complementary and competitive services. We believe this is good for Northern Ireland consumers. Belfast International Airport has scope to expand and develop to meet demand, while any further growth at Belfast City Airport will require some easement of the current Planning Agreement. An urgent resolution of this issue is required to enable both airports to plan for the future. Dublin Airport will continue to attract a considerable number of passengers from Northern Ireland, but a study should be carried out to quantify the scale of the leakage and identify ways of reducing it.

77. The City of Derry Airport provides a valuable economic lifeline for the North West of the island of Ireland, and the proposed major infrastructural funding to be provided by the two Governments will enable it to continue to develop and expand. The airport currently operates at a considerable annual deficit which falls on the local ratepayers, and ways need to be found to reduce this burden.

78. The introduction of the Route Development Fund was a valuable initiative with the potential to help develop much needed new routes, mainly to continental Europe. While the resulting increase in services has undoubtedly brought benefits to Northern Ireland consumers, the opportunity to maximise that potential may have been lost because of inadequate advance preparation and a rather liberal interpretation of the criteria. The creation of similar Funds in other regions of the United Kingdom has the potential to distort the market and reduce its overall effectiveness. A comprehensive independent review is needed before any expansion of the Fund scheme is considered.

79. Access to Heathrow remains crucial for the economic wellbeing of Northern Ireland but it is clear that intensive pressure on capacity at Heathrow and the other London airports could make this increasingly difficult to maintain. An 'Open Skies' agreement between Europe and the United States could add significantly to that pressure. Efforts must be made to find ways to protect the existing slots at Heathrow, if the need arises.