Ryanair: Government failed to act to save Kerry service

RYANAIR has accused the Government of failing to act to save the airline’s Kerry-Dublin service because it favours the semi-state companies to private sector organisations.

The airline is to reduce the three-times-daily service to once daily from November 13 because, it claims, Transport Minister Noel Dempsey won’t reimburse Ryanair the additional costs which it says it is entitled to reclaim under the Public Service Obligation contract under which the service is operated. Ryanair was to be paid €1.7 million a year under the PSO contract to provide the service. In 2008, Ryanair outbid Aer Arann for the three-year contract by more than €1m.

In its latest attack on Mr Dempsey over the issue, Ryanair pointed out that the Government had increased Bus Éireann’s PSO subsidy to reflect the bus company’s higher costs.