The PSO (Public Service Obligation) subsidy for air transport could have it's days numbered. Transport Minister Noel Dempsey yesterday published "Smarter travel - A new Tranport Policy for Ireland 2009 -2020".
Under the heading of Aviation, Action item 27 states "We will review the public service obligation (PSO) subsidies for regional air services which are due for renewal in 2011 having regard to progress being made on expanding bus and rail services so as to ensure that the most sustainable travel option receives priority support."
The PSO is an EU iniative ( not restricted to air travel ) to ensure connectivity of sparsley populated / remote areas throughout Europe.
The abolition of the PSO for air transport would have a serious impact on the airports in the west of Ireland as well as on the fortunes of Aer Arann which has seen it's growth cushioned to a certain extent by the PSO.
The full report can be found at : Report
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