In September 1989 the then Minister for Tourism and Transport announced a Government policy for Irish aviation. The Minister granted exclusive rights to Ryanair to operate from Ireland to Luton and Stansted and from Dublin to Liverpool and Munich. At the same time exclusive rights were granted to Aer Lingus to operate from Ireland to Heathrow and Gatwick and from Dublin to Manchester and Paris.
These arrangements were designed to focus aviation policy on a strengthening of the Irish presence on routes to and from Ireland, and in particular to ensure the continued contribution of Ryanair to Irish aviation; encourage further the development of a soundly based air transport industry which could compete effectively with foreign airlines, and promote the needs of tourism, trade and industry by providing a range of reliable and regular air services to/from Irish airports at the lowest economic cost.
The arrangements were for a period of three years only.