In accordance with EU Council Regulation 1008/2008, the Department of Transport, Tourism and Sport is inviting tenders from interested carriers to operate Public Service Obligation (PSO) routes in Ireland.

The routes in question link the regional airports in Counties Kerry and Donegal with Dublin Airport.

The relevant notices are published in the Official Journal of the EU (OJ No. 2011/C 131/06 and No. 2011/C131/07 of 03/05/2011). (See links below).

EU Notification of revised public service obligations

EU Notification of Invitation to tender

A copy of the Invitation to Tender is attached below.

It should be noted that whereas the OJ Notice refers to a commencement date of 1 October 2011 and a finishing date of 30 September 2014 for the new concessions, the actual commencement date will be 3 November 2011 and the completion date 2 November 2014.

For the new round of contracts, airlines are invited to bid for routes on an individual route basis. They also have the option of submitting a combined bid.

The tender notices specify that tenders must be submitted two months from date of publication of the Notices.  The Department of Transport, Tourism and Sport will accept tenders up to, but no later than, 12:00 noon (Irish time) on Monday, 4 July, 2011. 

Copies of the Notices and the full tender dossiers are available from the Department of Transport, Tourism and Sport in Dublin, contact details as follows:

Department of Transport, Tourism and Sport, Airports Division, 44 Kildare Street, Dublin 2.

Email:  airports@dttas.ie

1. Question
Is the current operating carrier forced to inform how many of the passengers are travelling on Full flex ticket? 
Answer
No.  The current operating carrier does not have to inform the Department how many of the passengers are travelling on Full flex tickets.

2. Question
Given that VAT will be charged at the Standard Rate of 21% on all services provided in the delivery of the PSO routes (including aviation fuel), and as the transport of passengers is VAT exempt carriers will have no right of deductibility of VAT charged, can the department confirm that charges including 21%VAT are to be included in the eligible costs?
Answer
It is up to an airline to identify in its tender costs that it expects to incur in the provision of a PSO air service  whether that be in respect of VAT or otherwise.   

3. Question

With regard to the tender proposal submission can you please confirm that the department will accept the electronic copy of the detail required in section 3.2.1 by email?

Answer

Provided the department receives the financial projections requested at paragraph 3.2.1 of the Tender Proposal Form in hard copy (six copies required), it will accept the electronic copy of the detail required in section 3.2.1 either by email or in disc format.