The Minister for Transport, Noel Dempsey, has told the Dáil that CIE will make a loss of €39.5m this year, compared with a €1.47m loss last year.
He said the loss was a 'significant deterioration' and was due to a drop in revenue, increased costs and higher fuel costs in the early part of the year. Mr Dempsey said CIE would have to reduce its frequency of service and withdraw some routes altogether.
A CIE statement said the group - Iarnrod Eireann, Dublin Bus and Bus Eireann - was facing a more difficult financial situation in 2009.
It said the three companies were looking at 'a wide range of options' to address the deteriorating financial situation. 'All aspects of the cost base are being examined for potential cost savings,' CIE said. But it added that no decision had yet been made on the final measures to be taken.
Minister Dempsey also told the Dáil he would make a recommendation to Government on its shareholding in Aer Lingus after the airline formally responded to Ryanair's offer. He said that Aer Lingus's response was due on December 29.
Mr Dempsey said the offer document from Ryanair was sent out to shareholders on Tuesday of this week.
He said the Government would be guided in its decision by aiming to get good value for taxpayers. Labour's transport spokesman Tommy Broughan said Ryanair's bid was an 'ego trip' by the airline's chief executive.
