Aer Árann has given notice for termination of its PSO contract for the Aran Islands and will end flights to the islands by the end of December this year.
RTÉ reports that the contract has been terminated because there are disagreements between Aer Árann and the Department Department of Culture, Heritage and the Gaeltacht about charges for flights that are not covered by the contract.
The dispute is centred around a charge to the company of roughly €500 for each non-PSO service it operates.
The company has served six months notice of its intention to end services in a dispute over the way in which the PSO contract is being interpreted.
The PSO contract covered around 3,500 flights to and from the Aran Islands every year.
