Public Enterprise Minister Mary O'Rourke says Aer Arann Express is to continue to provide services for the next eight months on routes linking Dublin with regional airports under a new temporary contract.
Aer Aran last month said it could not guarantee services under the existing contract as its losses on the routes were running ahead of the £8.75m compensation provided by the Government.
The Minister said today that a new formal tender process for the routes would be launched by the end of November, with services under new three-year contracts beginning on July 1 next year.
Aer Arann was the only carrier to submit a quotation for the temporary contract. The maximum level of compensation payable to the airline will be £10.9m, but the amount will be assessed on a monthly basis taking account of actual costs and revenues.
The routes involved link Dublin with Kerry, Galway, Sligo, Knock and Donegal.
