The CEO of Ireland West Airport Knock has said the awarding of the Dublin PSO contract is a matter for the Department of Transport following claims by Ryanair that the they had offered to serve the route for a lower price than Aer Arann.
Aer Arann are to recommence operating the route in October, after CityJet pulled out due to economic and logistical reasons, and Mr Robert Grealis, airport CEO, has stressed that the airport has no involvement in the decision to award the contract. He has welcomed the recommencement of the service and said the airport will continue to ensure an excellent service is provided to all airlines operating from the airport. “The Dublin commuter service recommences on October 1 and the airport’s priority is to work closely with Aer Arann to ensure a successful launch and ongoing service,” Mr Grealis said this week.
Meanwhile Ryanair has been granted leave by the High Court to seek a judicial review of the subsidy paid to Aer Arann on the Dublin to Knock route. Ryanair claims the Department of Transport rejected their offer to serve the route and “unlawfully” granted a PSO to Aer Arann without calling for a new tender after CityJet pulled out.
The Department of Transport have said that under the tendering process carried out earlier this year, Aer Arann was the second preferred bidder for the route.
Ryanair’s regulatory director Jim Callaghan has described Aer Arann as a “subsidy junkie” and said it was time the Department of Transport stopped wasting taxpayers’ money on grossly inflated public service subsidies. The low fares airline claim they could provide the service at a much lower price to the taxpayer and with over three times the passenger numbers.
