AER ARANN has been awarded the contract to operate the subsidised Dublin to Kerry route, under new public service obligation (PSO) contracts for regional air routes, the Department of Transport has announced.
Two return flights a day will be provided, beginning in November and running for three years.
Yesterday’s announcement was brought forward after Ryanair, the only airline providing Dublin-Kerry flights, unexpectedly pulled out of the route on Tuesday.
The announcement caused consternation among business and tourism leaders in the region.
Ryanair said it was stopping the service because of the Government’s decision to operate “a pointless PSO” on the route, adding that it was operating on an unsubsidised, low-cost basis.
Yesterday Ryanair confirmed it had applied for the PSO contract on the Dublin-Kerry route.
Ryanair had known since last week that it was not going to get the contract. The awarding of the PSO meant it had to cease operating the route in any case and it had to plan ahead, a spokesman for the airline said.
The airline had taken the decision early purely on a commercial basis and denied it pulled out of Kerry because it was piqued that it was unsuccessful in getting the PSO contract.
Ryanair spokesman Stephen McNamara said the airline had been “forced” to end the Dublin-Kerry service because the EU terms for subsidising the route meant another airline could not operate it on a commercial basis.
Mr McNamara yesterday rejected a suggestion by Fine Gael Senator Tom Sheahan on Radio Kerry that Ryanair had pulled out of the route early because it had a “hissy fit” when it knew it was beaten by Aer Arann on the PSO tender.
“Hissy fits are what failed politicians have – not successful airlines,” Mr McNamara said.
“The PSO meant we had to come off the route.”
The airline will cease the service on September 7th but will provide flights for the All-Ireland weekend.
Scottish regional carrier Loganair has been awarded the contract for the Dublin-Donegal service.
The new contracts are for a three-year period beginning on November 3rd with two return flights each day on both routes. It will involve an average subvention of €7.6 million a year.
“Donegal and Kerry are the most remote of the regional airports from Dublin,” said Minister for Transport Leo Varadkar yesterday.
“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.”