Public Service Obligation Services

Dáil Éireann Debate, Tuesday - 14 October 2014

Tuesday, 14 October 2014

Questions (386)

Pearse Doherty

Question:

386. Deputy Pearse Doherty asked the Minister for Transport, Tourism and Sport with regard to the awarding of the public service obligations air service scheme for the Donegal-Dublin route from 2015, his plans to introduce price cap regulation on air fares which would set a limit on the maximum price by which the successful service provider would be allowed to charge passengers for using these services; and if he will make a statement on the matter. [39293/14]

Written answers

Minister for Transport, Tourism and Sport

In preparing for the public tender process for PSO air services on the Donegal/Dublin and Kerry/Dublin routes post 2014, the current specifications for both routes were reviewed in consultation with all of the key stakeholders, including the airports and incumbent airlines. On the basis of that review, it was decided to reduce the maximum fare of €100 to a more realistic €80 for future contracts. While this will set the maximum fares that can be charged under such contracts, the actual fares charged on PSO air services to date are considerably lower and are dictated, in the main, by the market rather than any maximum provided under such contracts.