Kerry Airport are in talks with a number of carriers to take over the KIR - DUB PSO route. The Gov will cover 2 daily return flights. Aer Arann and Flybe are two of the airlines. It will be interesting to so what FR will do if one of them takes on the route.
If it is remaining a PSO route (ie government supported), it is none of the airports business. The government will put it out to tender, after confirming with Kerry (and Dublin!) that slots are available.
What Kerry MIGHT be doing is encouraging airlines to apply for the tender.....
MD