Noel Ahern (Dublin North West, Fianna Fail)

I thank Senator Keaveney for raising the matter but it is up to the airlines to come up with the most attractive packages in terms of price and operational arrangements, such as aircraft types and service timetables, which meet the basic specifications laid down for the PSO programme.

I have heard what the Senator stated in that when this flight began, there were no subsidies. There is now a very considerable subsidy, which the Senator acknowledged. Having considered such information, it is very hard to understand the story that the Department laid down the schedule in question. It is for the airline, subject to the terms of the PSO programme, to come up with the plan. In the case of the Derry route, a bid submitted by Aer Arann emerged as the very clear winner, having scored higher than the competing bids in both price and non-price terms.

In terms of proposed operating timetables, the bid met the requirement as set out in the specification published in the EU Official Journal, which stipulates that on any weekday, it should be possible for passengers from Derry to make a round trip to Dublin. Perhaps the Senator is arguing that the specifications were too loose. Nonetheless, this very competitive bid met the specifications and criteria we laid down.

Under the arrangements that apply to the Derry service at present, there is a weekday departure from Derry at 7.40 a.m. followed by a flight back to Derry which leaves Dublin at 9 a.m. It was clear from the tenders received for the new round of contracts that maintaining that type of schedule by basing an aircraft at Derry, for example, would have meant choosing a tender that involved a higher cost and had received a lower score. Not surprisingly, the evaluation panel favoured the Aer Arann bid.

The decision on the new Derry contract is fully consistent with the existing specifications for public service obligation services and with the rules for evaluating PSO tenders. If these were to be changed, for example, to introduce more specific requirements about scheduling, the way would be clear for a significant escalation in costs which would immediately call into question the continued viability of the PSO programme.

Aer Arann is anxious to make a success of the new service and it is mindful of the views of its customers. I understand a small change to the timetable is planned and Aer Arann now proposes to change the Derry morning departure, from Monday to Thursday, to 8.30 a.m. The company will also keep the schedule under review to see what opportunities may arise for further adjustments in the future within the framework of its successful tender.

The bid scored well on price and other aspects and met the criteria laid down. Satisfying the case put forward by the Senator would have meant ignoring costs and our own scoring system.