‘Incredibly positive’ funding progress for City of Derry Airport hailed by councillors

Council officers and members said recent funding commitments have secured the future of the airport until 2029.

At this month’s Governance and Strategic Planning Committee meeting Lead Assurance Officer, Denise McDonnell, reminded members that in April 2021 council submitted a business case to the Government, for £3 million in annual funding over a six-year period.

Ms McDonnell noted an initial £3 million was secured for the 2022/23 financial year, and since then officers have worked to realise the further five years of funding.

Ms McDonnell added: “Council was advised that responsibility for support for the period 2025/26 to 2028/29 would be taken forward by the Department for the Economy (DfE) and officers have therefore been working closely with DfE officials to secure the necessary approvals required.

“Following approval of the CoDA funding business case in April, the Economy Minister [Caoimhe Archibald] confirmed that DfE has assumed responsibility for providing annual operating funding of up to £3 million for CoDA from April 1, 2025.

“This is an extremely positive outcome which provides certainty for the airport up to March 31, 2029, and recognises the vital role the airport plays in the economic development of the entire North West and enables the airport to plan for future growth in the years ahead.

“Additionally, the London Heathrow PSO (Public Service Obligation) is separately funded by the Department of Transport (DfT) in the UK and DfE, at 50 percent each, at an annual cost of approximately £2.1 million.

“Funding has previously only been awarded on an annual basis [but] we have been working to secure and forward from 2025.

"Thankfully this process has also now been successfully concluded, with funding of £4.627 million now confirmed for April 2025 to March 2027.

“Again this is an incredibly positive result, and the first time that funding has been secured for a period of beyond one year, and we will be engaging with DfE and DfT in early 2026 with respect to the retender of the service beyond April 2027.

“The airport is working to secure the reinstatement of the Derry to Dublin PSO route which was cancelled in 2011, and, despite the major impact of the pandemic and subsequent global crisis in the aviation industry, the airport has continued to grow and recover.

“In 2024/25 the airport carried approximately 203,000 passengers, which was a 33 percent increase from 2023/24.

“The significant funding secured will reduce council's recurrent funding contribution from £3.445 million to £1.54 million, and the £1.9 million recurrent saving has been agreed by council, through the rates process, to be redirected towards the financing of its ambitious strategic leisure projects in Derry and Strabane.”

Sinn Féin councillor Sandra Duffy said: “When Minister Conor Murphy was in place in DfE he put a real focus on the airport [and] saw [its]value for the economic development of the entire North West. So it's great to have the PSO in place and have the business case now finally approved.”

SDLP councillor Rory Farrell said: “It gives us funding certainty until 2029 [and] we've got confirmation also about the PSO, that that funding is in place until 2027, so it's all really welcome.”