The relocation of Baldonnel military air base in west Dublin, to Department of Defence lands at Oranmore, Co Galway, has been proposed by the Minister of State for Arts, Heritage, Gaeltacht and the Islands.
Mr Eamon O Cuiv, who is a TD for the area, told The Irish Times this was one of several options that should be considered for Oranmore following last week's confirmation that the Esat chairman, Mr Denis O'Brien, was no longer interested in investing in an airport there.
Given the recent proposals to develop Baldonnel for commercial use, relocation of the military air base to west of the Shannon was worth examining, Mr O Cuiv said. The new airport could serve both military and civilian aircraft and could be a west coast search-and-rescue base, he said.
Mr O'Brien suggested that the State's contract medium-range rescue helicopter could be based in Galway, rather than Shannon. Government approval has been given for the purchase of medium-lift helicopters for the Air Corps, with delivery expected in two to three years.
Mr O Cuiv described Mr O'Brien's withdrawal as "not a major setback" and said he was still committed to making use of the Department of Defence lands.
Mr O'Brien was to invest £25 million in the venture under a public-private partnership deal.
Following a feasibility study, he is understood to have informed the Minister that he did not believe it would yield a sufficient return.
"Regional airports by their very nature are not big money-spinners, except in the south of England, but are a vital part of our infrastructure," Mr O Cuiv said. The reluctance of low-cost airlines to pay landing charges was also a factor.
"Now that we know Mr O'Brien's position, it forces us to concentrate on an integrated survey of the land with regard to their best use for the State and for Galway," Mr O Cuiv said.
Galway Airport at Carnmore, which is run by the city's chamber of commerce, can only provide commercial landing facilities for turbo-prop aircraft; an extension to the runway is being considered by An Bord Pleanala, following objections by residents, and a decision is due at the end of December.
Mr O Cuiv believes an airport which can handle medium-haul 737 jets is crucial for the further development of tourism in the west. However, the chamber of commerce believes in the long-term viability of Carnmore and is on the point of securing a new Galway-London route from a "significant airline" pending extension of the runway.
A Government decision on the Public Service Obligation air routes, subsidised by the EU to serve economically disadvantaged regions, is not expected until the middle of next month, writes Joan Tobin.
The Minister for Public Enterprise, Ms O'Rourke, has included Knock, Co Mayo, and Derry in the application to the EU Commission, along with Donegal, Sligo, Galway and Kerry. In a separate development, the Minister is expected to receive a report on State funding at Knock Airport early in the new year, which has been conducted by a senior official in her Department.
Some £500,000 has been given in marketing grants and £1 million was designated for infrastructural funding. The airport, which was established by the late Monsignor James Horan, is held in trust for the people of Connacht.
Last month a consortium of US business interests met the airport board to discuss transforming it into an international airline facility with a town business park.
The meeting was facilitated by the Connacht-Ulster independent MEP, Ms Dana Rosemary Scallon.
The group was led by Mr Art McCabe, a consultant with Massport, managing company for Logan Airport and Boston port. The group outlined a 15-year project for Knock which would include providing an emergency medical helicopter service in the region, along the lines proposed by Dr Jerry Cowley.
Ms Scallon said Objective 1 status for the Border, Midlands and Western region presented a "window of opportunity" to benefit both investors and the State.