merrion street

Minister for Transport, Tourism & Sport Leo Varadkar TD has announced today (Wednesday) that following an EU public tendering process, contracts to provide scheduled air services on the Public Service Obligation (PSO) routes between Donegal and Dublin and Kerry and Dublin have been secured by two airlines.

The Scottish regional carrier Loganair has been awarded the contract for the operation of the Donegal/Dublin service and Aer Arann has been awarded the contract for the operation of the Kerry/Dublin service. Services are expected to start this November.

The new contracts are for the three year period commencing on 3 November 2011 with two return flights each day on both routes. It will involve an average subvention of €7.6 million per annum.

Minister Varadkar said: ‘Donegal and Kerry are the most remote of the regional airports from Dublin. This was a key factor in the Government’s decision to continue funding for the PSO air services to these two airports for a further three years, despite the current public funding constraints. Renewal of the contracts in 2014 will depend on how extensively the services are used, and on public finances’.

"These links will contribute towards balanced regional development in terms of business and tourism. People in Donegal or Kerry will be able to conduct commercial or personal business in Dublin and to return home the same day. It will also support the tourism industry in Donegal and Kerry, as tourists on relatively short breaks can reach their holiday destinations quickly through onward connections between Dublin and Donegal or Kerry.

"I am confident that the two operators will provide a quality service on the routes which will meet the needs of the public. I am also pleased that there was a good level of interest in the tender process with four airlines submitting tenders providing a variety of offerings on the two routes."

Following an assessment of these tenders by an Evaluation Panel, contracts to provide scheduled air services on the two PSO air routes were offered to the tenderers selected to have the most economically advantageous bids for the routes, which were also the lowest. Contracts have now been finalised with these airlines.