The appeal court has cleared the way for a new €800million air sea rescue contract.
A High Court decision given earlier this week lifting a suspension on the awarding of a new €800 million contract for the Irish coastguard air search and rescue service was today upheld by the Court of Appeal.
The appeal was expedited given the urgent nature of ensuring there is a two-year transition period between the end of the current contract in 2025 and the takeover of the service by the company which won the competition.
In May, the Minister for Transport announced Bristow Ireland, a subsidiary of the US-based Bristow group, was the preferred bidder for the new contract.
The current provider, CHC Ireland, then brought a legal challenge against the minister claiming there were a number of flaws in the conduct of the tender competition.
As a result, an automatic suspension on the awarding of the new contract kicked.
The minister then applied to the High Court to have it lifted. CHC opposed the application.
CHC, which is one of the largest global operators of rotary wing aircraft, employs 141 in Ireland. It was awarded the current contract in 2012 for 10 years and has exercised options to extend up to July 2025.
The winning bidder was the rival firm, Bristow Ireland Ltd, a subsidiary of the US-based Bristow Group Inc which will run the service for 10 years from 2025. Bristow was a notice party in the legal proceedings.
On Tuesday, the High Court's Mr Justice Michael Twomey agreed to the minister's application to lift the suspension.
Mr Justice Twomey said the balance of justice favoured the lifting of the automatic suspension in this case for the reasons including the fact that both parties claim that lives will be lost if the automatic suspension is lifted/continued.
In such a situation, and where the court cannot determine which party is correct, lifting the suspension preserves the status quo by permitting the minister to sign the new contract with the winning tenderer and not being forced to sign an extension of the existing contract with the losing tenderer, he said.
The judge granted a stay on his decision after he was told the Court of Appeal had agreed to hear an urgent appeal on Thursday.
On Friday, the three judge Court of Appeal gave its decision and affirmed Mr Justice Twomey's order.
On behalf of the Court of Appeal , Ms Justice Caroline Costello said having taken time to consider the arguments, the court was of the view that the balance of justice favoured lifting the suspension.
She said the court would give its written decision on a later date.
