Airlines tender for regional routes

AT LEAST four airlines submitted tenders yesterday to the Department of Transport to operate six public service obligation (PSO…

AT LEAST four airlines submitted tenders yesterday to the Department of Transport to operate six public service obligation (PSO) routes from Dublin to regional airports over the next three years.

Ryanair, Aer Arann, CityJet and Loganair in Scotland all confirmed to The Irish Times that they had submitted bids for the PSO routes with the department by yesterday's deadline.

Aer Arann said it tendered for all six services - Derry, Donegal, Sligo, Galway, Kerry and Knock. It currently operates all bar the Derry route.

Loganair, which is a franchise partner of Birmingham-based airline Flybe, said it was seeking to retain the Dublin-Derry route.

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Ryanair is seeking to get the Dublin to Kerry services, while CityJet, the Dublin-based subsidiary of Air France, said it tendered for Donegal, Derry and Knock.

BMI Regional, which applied for the PSO contracts previously, confirmed it had not sought any routes this time, while Aer Lingus is not thought to have entered the process. The Department of Transport declined to comment on the tenders received.

The winners will be announced on May 3rd and the contracts will run for three years until the summer of 2011.

Ryanair last week claimed that the Government had paid €109 million over the past six years to subsidise the PSO routes.

The Michael O'Leary-led airline said 42,000 passengers were carried on these routes in 2006 at an average cost to the taxpayer of €102 each.

Ciarán Hancock

Ciarán Hancock

Ciarán Hancock is Business Editor of The Irish Times