However Aer Arann, the company which has operated the Carrickfin to Dublin flight for a number of years, is now being replaced by Scottish regional carrier Loganair.
Details of the news will be announced later this morning by Transport Minister Leo Varadkar.
The new contract is for the three year period starting on 3 November 2011 with two return flights each day.
Aer Arann will now operate the Dublin to Kerry route.
Minister Varadkar said: ‘Donegal and Kerry are the most remote of the regional airports from Dublin. This was a key factor in the Government’s decision to continue funding for the PSO air services to these two airports for a further three years, despite the current public funding constraint. Renewal of the contracts in 2014 will depend on how extensively the services are used, and on public finances’.
“These links will contribute towards balanced regional development in terms of business and tourism. People in Donegal will be able to conduct commercial or personal business in Dublin and to return home the same day.
“It will also support the tourism industry in Donegal, as tourists on relatively short breaks can reach their holiday destinations quickly through the onward connection between Dublin and Donegal or Kerry.
“I am confident that the two operators will provide a quality service on the routes which will meet the needs of the public.
“I am also pleased that there was a good level of interest in the tender process with four airlines submitting tenders providing a variety of offerings on the two routes.”
The confirmation on the new three year contract for Donegal Airport has been welcomed by Labour Senator Jimmy Harte.
“This is a major shot in the arm for Donegal especially from a tourism and economic perspective,” he said.