From July, Ireland takes the chair of the Council of the European Union. Few Member States have as much at stake in aviation.
As an island economy, the country relies heavily on air connectivity, while its aircraft leasing sector plays a central role in global aviation finance.
That combination gives the Irish Presidency a distinctive vantage point at the intersection of regional connectivity, airline operations, and European regulation.
For Keith Butler, CEO at Emerald Airlines, this creates an opportunity to champion practical policies that support both connectivity and competitiveness across Europe’s regions.
“Connectivity is not simply a convenience for Ireland,” he explains. “It is essential infrastructure underpinning economic growth, trade, tourism and social cohesion.
“Despite our relatively small size, Dublin has become one of Europe’s largest airports and one of the continent’s leading transatlantic hubs. Aviation therefore plays a hugely important role in Ireland but equally Ireland plays an important role in aviation.”
Ireland’s leasing advantage
But Ireland’s influence extends beyond connectivity. Irish-based lessors manage aircraft worth more than $315bn (€274bn), accounting for 69% of the value of all global leased aircraft.
That leasing dimension is particularly relevant for Emerald Airlines, which operates Aer Lingus Regional services using leased ATR aircraft. Aircraft financing may happen behind the scenes, but it plays a major role in determining how regional networks develop and grow.
“This strong aviation heritage means the Irish Government has a deep appreciation of the industry’s strategic importance and an understanding of the concerns facing regional aviation that other countries may not always share.
“Ireland holding the EU Presidency therefore represents an opportunity to bring practical and balanced aviation policy to the forefront of the European agenda.”
Rising costs, tougher choices
For Butler, one issue stands above the rest: rising costs. Asked which aviation issues should move to the top of the EU agenda during the Presidency, he points first to fuel.
“Regional operators are often more exposed due to weaker balance sheets, lighter fuel hedging positions and tighter margins on lower-volume routes.”
But fuel is only one part of the challenge. Inflationary pressures continue to ripple through the sector, with maintenance costs becoming a growing concern.
“Maintenance costs alone have increased by approximately 60% over a five-year period, more than double underlying inflation rates, with little evidence of this trend slowing.”
Against this backdrop, Butler believes there should be flexibility in how additional environmental costs are applied during periods of market stress. He would also like to see consideration given to a temporary suspension or adjustment of the ETS regime.
“While the long-term environmental objectives remain important, imposing additional cost burdens during periods of acute market stress risks disproportionately impacting regional airlines and, by extension, the communities that rely on them.
“More broadly, maintaining competitive and sustainable regional connectivity must remain a key policy objective.”
“Maintaining competitive and sustainable regional connectivity must remain a key policy objective”
Why regional routes matter
Regional connectivity is about more than networks; it is about the communities those services support.
Emerald Airlines demonstrates this through the recent renewal of the Donegal–Dublin public service obligation (PSO) route for another four years, which Butler frames as a social and economic link rather than simply a transport product.
“Regional air services often provide much more than transport links; they provide economic and social lifelines for communities. For many in the region, this route is essential.
“Donegal is roughly a five-hour drive from Dublin, and the air service plays a crucial role in enabling access to business activity, education, medical appointments and wider economic opportunities. It also creates significant tourism benefits, particularly through access to the wider Aer Lingus network at Dublin Airport.”
Beyond this PSO service, Emerald’s network links Dublin, Belfast and Cork with regional cities across Britain and northern France. The carrier competes with low-cost airlines on many routes, but its value proposition is different: high-frequency, year-round service designed for business travellers, leisure passengers and those visiting friends and relatives.
Butler also points to routes that are too small for larger narrowbody aircraft but still economically and socially important: “Connectivity remains as important as ever for communities and businesses, and regional aviation continues to provide one of the most cost-effective, flexible and efficient solutions available.”
Ireland’s Presidency comes at an important moment for European aviation. With its unique combination of aviation expertise, global leasing influence and reliance on air connectivity, Ireland is well placed to help shape a more balanced policy agenda; one that supports decarbonisation while safeguarding the regional air services that connect Europe’s communities.