Billy Kelleher (Cork North Central, Fianna Fail)

The Minister for Transport sends his apologies to the two Deputies and realises that this is a serious issue and one that is close to the hearts of the Deputies' constituents.

The Minister is very aware of the possible implications for Kerry of Ryanair reducing its level of services on the Kerry-Dublin route. This service is operated under the current public service obligation, PSO, contracts for services linking Dublin Airport with the regional airports at Derry, Donegal, Sligo, Ireland West in Knock, Galway and Kerry.

These contracts commenced on 22 July 2008 and are due to expire on 21 July 2011. Exchequer subvention is paid in respect of these services on the basis that they would not be provided by the airlines on a fully commercial basis.

In the case of the Kerry route, following an EU public tendering process, a bid submitted by Ryanair emerged as the winner. The bid met the requirement in terms of proposed operating timetables as set out in the specifications published in the EU Official Journal, which stipulated that three return flights per day would be provided. The bid from Ryanair also set out the compensation it required to operate the service. Based on that bid, Ryanair were awarded the contract to provide the scheduled air services over the three year contract period and are receiving payments in accordance with the contract.

The Minister for Transport refutes recent claims by Ryanair in regard to the PSO contract and states that he has met his obligations under the terms of that contract. The Minister is currently considering the company's notification to reduce frequencies on the route from three daily return services to one daily return service with effect from 1 November 2010 on a commercial basis outside the PSO arrangement. A response will issue to Ryanair once all options have been examined, having regard to the terms of the contract, the obligations on Ryanair to provide a service under that contract and EU legislation. I will convey the views of the Deputies who spoke on this important issue to the Minister.

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