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Irish PSO decision made

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Old 12th Jan 2011, 19:04
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Irish PSO decision made

PSO routes from Knock, Galway, Sligo and Derry will cease from the middle of this year. Kerry and Donegal to continue.

Transport.ie :: Press Release

Last edited by Sky Conductor; 12th Jan 2011 at 19:40.
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Old 12th Jan 2011, 19:17
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Hi All

PSO's finish in July of this year so only 6 months to go. Regardless of what they say Aer Arann have a big hole to fill.

5Q
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Old 12th Jan 2011, 20:45
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PSO's finish in July of this year so only 6 months to go. Regardless of what they say Aer Arann have a big hole to fill.
In total they will be losing 8 return flights a day.
DUB SXL x2
DUB LDY x2
DUB GWY x3
DUB NOC x1

When will DUB KIR tender be revisited? And if it is will Aer Arann be able to get it by virtue of the fact that they could offer more than 1 flight a day and be successful given Ryanair's changes on the route to 1 daily?

I am not sure GWY would be axed, though scaled back significantly maybe to a early morning GWY DUB and a late evening DUB GWY. That would provide an aircraft for DUB early in the morning for other flights eg IOM, or maybe IOM would become Aer Lingus Regional.

Moreover, what future for SXL? What will be left of Aer Arann brand at DUB?

EI-BUD
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Old 12th Jan 2011, 21:05
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Moreover, what future for SXL? What will be left of Aer Arann brand at DUB?
Very hard for the DOT to justify pumping millions in subsidy into SXL given size and lack of any commercial growth opportunities, especially with it's close proximity to NOC and better transport links to Dublin

DUB has been it's only route since 07 and even the ATR4 was load limited due to very short landing area designation needed to create RESAs. There are several legal and physical obstacles to expansion (namely the protected bay and lack of local support) so the runway extension will likely never happen.

But the rescue service and training/maintanance companies are still based there, should still have a future for GA.
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Old 13th Jan 2011, 07:37
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The 5Q

Surely this was anticipated at the time Stobarts made their investment in Aer Arann and that is where the planned SEN based aircraft will come from.
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Old 13th Jan 2011, 08:53
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When will DUB KIR tender be revisited? And if it is will Aer Arann be able to get it by virtue of the fact that they could offer more than 1 flight a day and be successful given Ryanair's changes on the route to 1 daily?
Yes, the decision to retain DUB-KIR within the PSO network does indeed appear a bit odd. Cynically, as you say this could be a roundabout means to get FR off the PSO if another carrier submits tender offering the frequency required..but of course there is absolutely nothing to stop FR remaining on the route anyway on its existing full commercial basis.
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Old 13th Jan 2011, 14:24
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I would suggest that RE now have a fleet with aircraft size far in excess of what post PSO grant makes these routes viable. Looking at for example Manx2 from BHD-ORK, if these routes are to continue at any viable frequency I would suggest that this is the type of operator that would fill the void.
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Old 14th Jan 2011, 07:55
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Yes, the decision to retain DUB-KIR within the PSO network does indeed appear a bit odd. Cynically, as you say this could be a roundabout means to get FR off the PSO
Don't think it's anything that clever/cunning. Suspect it's just a stroke by Jackie HealyRae and John O'Donoghue.
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Old 14th Jan 2011, 08:45
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Bingo! Aisle 2c. JHR gets whatever he wants, new hospitals, by passes sure..a pso route is small potatoe

Hopefully with the whole FF game failing apart a lot of the strokes being pulled by the DAA and within the Irish aviation biz will come to light soon enough.

Will be interesting to see if the new crowd are any different. The DAA is riddled with FF people though so could be interesting what happens there.
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Old 14th Jan 2011, 11:31
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I would suggest that RE now have a fleet with aircraft size far in excess of what post PSO grant makes these routes viable. Looking at for example Manx2 from BHD-ORK, if these routes are to continue at any viable frequency I would suggest that this is the type of operator that would fill the void.
Manx2 have a LET40 carrying 19 on that route. Loganair have the Saab340 eggbeater which was on NOC-DUB last autumn, so they may also be looking at these routes.

Speaking of the RE fleet, looks like most of them are destined for new SOU base now?
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Old 14th Jan 2011, 13:02
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A couple of points on this

Most people seem to have made an assumption that RE would automatically have both re-tendered for and won the PSO's when they became available. While the former was likely, the latter was not a certainty by any means.

That said, the PSO's were reckoned to be worth €13m per year to RE, their revenue in 2010 was reported as being circa €61m.

IMHO, if they get it right with the Aer Lingus Regional operations they could recover the revenue in 2 years.

JAS
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Old 14th Jan 2011, 13:41
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Speaking of the RE fleet, looks like most of them are destined for new SOU base now?
SEN I hope, unless they want to be eaten alive by Flybe
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Old 14th Jan 2011, 14:05
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Speaking of the RE fleet, looks like most of them are destined for new [SEN] base now?
IMHO, if they get it right with the Aer Lingus Regional operations they could recover the revenue in 2 years
I strongly suspect that there may be more flying to come under the EI Regional Franchise contract.

(1) There have been rumours going around for a while that they may be sniffing after DUB-LCY which would probably lock up a whole ATR-72

(2) It would also not surprise me if you find that EI "mainline" end up dumping their 3 per day DUB-BHX in favour of an EI "Regional" 5 per day ATR72 operation.

If you then calculate the number of airframes that Arann might have that no longer have PSO operations attached to them from July, and factor in the two possible above operations from DUB, what does that actually leave you in terms of aircraft for a SEN operation? I assume that whilst NOC-DUB, SXL-DUB, LDY-DUB etc would probably end, there is a fighting chance that Arann might remain on GWY-DUB?
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Old 14th Jan 2011, 15:24
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there is a fighting chance that Arann might remain on GWY-DUB?
..but will they if there is no PSO funding??? Would'nt a KIR-DUB be a better option for them and there is a chance to integrate into the Manchester existing service MAN-KIR. At least the KIR attracts funding!!!
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Old 14th Jan 2011, 16:18
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..but will they if there is no PSO funding??? Would'nt a KIR-DUB be a better option for them and there is a chance to integrate into the Manchester existing service MAN-KIR. At least the KIR attracts funding!!!
KIR was 4x daily and at it's peak, but FRs morning - evening roundtrip is blocking the key slots.

The real damage losing PSO will do is reduce operating hours, that was the real benefit subsadising "out of hours" operations for red eye services. If GWY survives it will probably halve their operating hours. Didn't they bring in several ATC "tea breaks" last year?
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