Final contracts are to be signed shortly with a new operator for the Aer Lingus Regional service.
The Irish Independent is reporting that a new carrier, Emerald Airlines, is Aer Lingus' preferred bidder for the regional service, which had been operated by Stobart Air until it collapsed last month.
Stobart Air also operated the PSO flight from Kerry to Dublin.
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It is understood that Emerald Airlines couldn't bid for an interim seven-month contract for the PSO route as it doesn't have its Air Operator Certificate but is hoping to compete for the four-year contract when it is offered.
The Department of Transport is hoping to award the shorter contract for the Kerry-Dublin flight in the coming weeks.
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