Willie Penrose (Longford-Westmeath, Labour)
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Question 74: To ask the Minister for Transport if an airline (details supplied) is still honouring the public service obligation contract at Kerry Airport; when the new PSO contracts are due to be negotiated; and if he will make a statement on the matter. [42739/10]

Martin Ferris (Kerry North, Sinn Fein)
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Question 81: To ask the Minister for Transport his plans to ensure the maintenance of the Kerry to Dublin air link; and if he will make a statement on the matter. [36649/10]

Joe Costello (Dublin Central, Labour)
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Question 85: To ask the Minister for Transport if an airline (details supplied) has withdrawn its threat to abandon the public service obligation for Kerry Airport; if that threat is not in itself a breach of the airline's contractual duties; the action he has taken in response to the threat; and if he will make a statement on the matter. [42715/10]

Noel Dempsey (Meath West, Fianna Fail)
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I propose to take Questions Nos. 74, 81 and 85 together.

As you are aware, the Kerry to Dublin air 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 run from July 2008 to July 2011.

Ryanair were awarded the contract to provide the scheduled air services between Dublin and Kerry over the three year contract period and have been receiving payments in accordance with the contract.

Despite several requests to Ryanair over recent months asking them to abide by the terms of the contract, I have been advised that with effect from Saturday 13 November, 2010 they have carried out their threat to reduce services on the route from three daily to one daily. Ryanair have already indicated that this daily service will be operated outside of the PSO arrangements.

I have since written to Ryanair formally notifying them that in accordance with the terms of the contract, due to the material breach of performance of the terms and standards specified in the contract, the contract has been terminated by me with effect from 13 November, 2010.

In accordance with Paragraph 8 of the original invitation to tender of 30 January, 2009, my Department has yesterday been in contact with the next highest ranking tenderer for the Kerry/Dublin PSO service and has asked them to consider whether they are in a position to provide the service for the remainder of the concession period, subject to the same conditions and level of compensation applying to the current contract.