Wednesday, September 3, 2008

Aer Arann awarded Knock - Dublin PSO route

Aer Arann have announced that they have been awarded the Ireland West (Knock) - Dublin PSO route by the Minister for Transport, Noel Dempsey. Aer Arann had previously operated the route up until July this year when they lost out to CityJet in the last round of public tenders. Since winning the route CityJet had failed to operate the service. It had been reported that CityJet were to operate the route with a VLM Fokker 50 once the proposed merger with VLM took place. It was in March 2008 that CityJet's parent Air France - KLM provided €180m for the purchase of VLM. The Office of Fair Trading in the UK however was unhappy about the proposed merger since it would have allowed the combined entity to have up to 70% market share on certain London City routes. The OFT threatened to refer the matter to the Competition Commission unless undertakings by AF-KLM were given in relation to divesting themselves of slots at LCY. In May AF-KLM responded with a proposal which is still under consideration by the OFT. This delay in approving the merger or referring to the Competition Commission has created a knock on delay in providing an aircraft for the Knock - Dublin route. The route is reported to be one of the thinner PSO routes which presumably would have been a disincentive to CityJet to wet lease an aircraft for the route. Aer Arann's service recommences on October 1 with departures from Knock at 07.10 Mo through Sa with a 09.00 am departure on Sunday. The return leg operates from Dublin at 18.15, seven days. The picture shows one of Aer Arann's latest aircraft ATR 732 EI-REO msn 787 about to depart from Galway Carnmore.

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