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Call to axe Donegal and Derry flight subsidies 07.03.08

RYANAIR has called on the Government to scrap the subsidies on flights to Donegal and Derry from Dublin. The low-cost airline also called for subsidies to four other regional airports including Galway, Knock, Sligo and Kerry to be axed.
The company made its call last week just before the deadline closed for tenders to operate the six public service obligation (PSO) routes from 2008 to 2011. It claimed the Government had paid more than €100m to subsidise the six regional routes in the past six years. City of Derry Airport.
However, Aer Arann chief executive Pádraig Ó Céidigh disputed this figure. He said PSO routes were part of Government policy and were approved by the European Commission.
Mr. Ó Céidigh said Aer Arann, which won four of six PSO contracts last time around, had simply followed a "highly transparent" procurement process.
He said Aer Arann was awarded a fifth contract when Loganair pulled out of the Knock route. Loganair continues to service the subsidised route between Dublin and Derry. Ryanair, BMI Regional, CityJet and European Express all applied without success for the PSO contracts in 2005.
The successful contractors for 2008 to 2011 will be announced on May 3. A number of Donegal patients avail of the subsidised flights to cut the travel time to their treatment in Dublin.
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