John O'Donoghue (Kerry South, Fianna Fail)
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Question 319: To ask the Minister for Transport if he intends to issue legal proceedings for specific performance and damages against an airline (details supplied) following notification to him of its intention to withdraw two of its daily flights on the Kerry to Dublin and Dublin to Kerry route as and from 1 November 2010; and if he will make a statement on the matter. [37612/10]

John O'Donoghue (Kerry South, Fianna Fail)
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Question 320: To ask the Minister for Transport if he has entered into talks with an airline (details supplied) with a view to replacing another airline on the Dublin/Kerry and Kerry/Dublin route; and if he will make a statement on the matter. [37616/10]

Noel Dempsey (Meath West, Fianna Fail)
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I propose to take Questions Nos. 319 and 320 together.

I am very aware of the possible implications for Kerry of Ryanair reducing its level of services on the Kerry/Dublin route.

As you are aware, 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 Airport Knock, Galway and Kerry Airports. These contracts commenced on 22 July 2008 and are due to expire on 21 July 2011.

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 in order 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.

I can assure the Deputy that I have met all my obligations under the terms of the contract. There are also obligations on Ryanair under the contract and it is a matter for that Company to ensure it complies with its terms. My Department is currently in communication with the Company in the matter. Clearly, if there is a breach of the contract, my Department will have to consider its options.

I am aware that discussions have taken place between Kerry Airport and Aer Arann in relation to the possibility of providing a service on the route. My Department has also had discussions with Aer Arann about a range of issues, including the Kerry PSO. However, my focus is currently on ensuring that Ryanair honours its obligations under the contract.