A seven-month contract to operate the Dublin-Donegal public service obligation (PSO) air route has been awarded to Swedish carrier Amapola Flyg by the Department of Transport. The service will recommence on July 26.

The taxpayer-supported service had been operated by Dublin-based Stobart Air, which collapsed last month. Stobart Air had operated the Aer Lingus Regional service under a franchise agreement.

The Department will request tenders later this year to operate the Dublin-Donegal service under a longer-term agreement.

Amapola Flyg was founded in 2005, initially as a freight transporter. It recently began offering passenger services and also operates seven public service obligation routes in Sweden and Finland.

The Government had initially intended to offer a seven-month contract to operate the Dublin-Kerry PSO route, which had also been operated by Stobart Air.

However, Ryanair offered to operate the route on a commercial basis.

But a public spat ensued between the Department of Transport and Ryanair over the proposal, while Kerry Airport said today that it has not been approached yet by Ryanair with details of the service. Ryanair said yesterday that it intends to operate it from July 28.

Kerry Airport described the announcement as “premature and inaccurate”.