Mary Wallace (Meath East, Fianna Fail)

The Minister for Transport fully recognises that connectivity to both Shannon Airport and the west of Ireland is a key concern. Ireland's existing air services public service obligation, PSO, scheme is focused on subvention of services from Dublin to Kerry, Galway, Knock, Sligo, Donegal and Derry. These PSO routes serve regional airports which, because of their remote locations and-or limited runway facilities, find it difficult to attract commercial scheduled air services. The PSO contracts expire in July 2008 and the Department has commenced consideration of the arrangements, including detailed tender specifications, that should apply for the next contractual period. Existing PSO services to the regional airports cost approximately €15 million per annum.

The relevant EU Council Regulation (EEC) 2408/92 of 23 July 1992 allows a member state to establish a public service obligation in respect of scheduled air services to an airport serving a peripheral or development region in its territory or on a thin route to any regional airport in its territory, where such air services are considered vital for the economic development of the regions concerned and where air carriers are not prepared to provide them on a commercial basis. Subject to EU Commission approval, member states may limit access to the route concerned to only one carrier, provided the right to operate the services is offered to air carriers by public tender. They may also pay a subvention in respect of these routes subject to compliance with the criteria in the Council regulation.

The Minister for Transport, Deputy Dempsey, has asked the Department to consult with the EU Commission on the options for facilitating the provision of air services to meet the connectivity requirements of the west of Ireland in a liberalised, competitive aviation market.

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