Government to continue subsidising regional flight routes

Regional air services from Donegal and Kerry to Dublin will continue to be subsidised for the foreseeable future, the Minister for Transport Pascal Donohue has said.

Mr Donohoe announced plans on Wednesday to retain the Public Service Obligation (PSO) for the routes until January 2017. The current contracts on the routes were due to expire at the end of January 2015.

Stobart Air, the former Aer Arran, has won the contracts to operate the two routes. It currently runs the Kerry to Dublin-subsidised service while Loganair operates the Donegal route.

PSO schemes provide financial support to airlines to operate essential services serving regions which would not otherwise be commerically viable.

Mr Donohoe said Donegal and Kerry airports are the most remote of the regional airport network from Dublin and continuation of the PSO air services would promote balanced regional development for those areas.