Minister grounds Shannon Heathrow hopes

HOPES that a Shannon-Heathrow service could be restored after the controversial axing of the route by Aer Lingus last month have received a big setback after the Government indicated this week that EU funding would not be available for a new operator.

Transport Minister Noel Dempsey has played down the possibility that EU funding for a new link could be provided to airlines willing to operate the route under a Public Service Obligation (PSO).

Under EU legislation, member states can impose a PSO on routes that are vital for the economic development of the region they serve.

Business interests in the mid-west have expressed concern that the loss of connectivity following the cancellation of the service will have a negative impact on the local economy, despite the launch of a new Cityjet route between Shannon and Paris earlier this week.

PSOs already operate on air services between Dublin and Sligo, Donegal, Derry, Knock, Galway and Kerry.

The Government recently issued a tender for renewal of the PSO on these routes for a three-year period beginning in July 2008.

However, the Shannon-Heathrow route was not considered for inclusion.

Mr Dempsey said officials from the Department of Transport had discussed the possibility of designating the route for a PSO with the European Commission.

However, officials in Brussels stressed that the rules for granting PSO were very restrictive.

“In order to be eligible, a route must not only be vital for the economic development of the region concerned but the existing services must be adequate,” explained the minister.

Mr Dempsey said EU officials had highlighted the fact that there were already regular air services between Shannon and other airports in the greater London area, including Gatwick, Luton and Stansted.

The European Commission made it clear that it would be hard to justify.

Mr Dempsey said the British government was also resistant to designating any route serving London from another EU country as a PSO.