Loganair and Aer Arann have won contracts to provide air services on public service obligation (PSO) routes between Donegal and Dublin and Kerry and Dublin.
A statement from Transport Minister Leo Varadkar said Loganair, a Scottish regional carrier, had been awarded the contract for the Donegal/Dublin. Aer Arann will operate the Kerry/Dublin service. Both services are expected to start this November.
The new contracts are for a three-year period with two return flights each day on both routes. Subsidising the routes will cost the State an average of €7.6m a year.
Minister Varadkar said renewal of the two contracts in 2014 would depend on how extensively the services were used, and on the public finances. PSO services between Dublin and Knock, Sligo and Galway ended in July.
Ryanair yesterday blamed a new PSO operation on the Dublin to Kerry route for its decision to withdraw its service on the route.
Aer Arann said today that it was disappointed not to have been awarded the Donegal-Dublin tender.
'We have worked very closely with the team at Donegal airport for many years to grow passenger numbers and we regret that the Donegal services will no longer form a part of our network,' its chief executive Paul Schütz said.
'Aer Arann remains committed to serving the regions of Ireland and we will continue to assess opportunities for additional route development,' he added.
