Digital Messenger Limited, who operate the private service, had brought a case against Minister Noel Dempsey after he gave the go ahead for the 41X service to frequent the tunnel. Though no terms of the settlement were outlined in court, it now means both the bus services may continue to use the shortcut on their city centre routes.
While unable to comment on the case, Swords Express managing director, Antoin O'Lachtnain said he was 'happy we could come to an amicable agreement with the department', as the company await approval regarding a proposed second route.
'We are planning to have a second service, that will go from Swords Manor, through the village, via Forrest Road and out through Holywell,' Mr O'Lachtnain said.
'The idea is that it will link Swords together. Holywell also has no service at the moment.' An application has been with the department since January, but it may take another four months before a decision is made.
'It could be longer,' Mr O'Lachtnain added. 'We're anxious to start it, as it would allow us to provide a late night service. 'We would be passing by a lot more houses, on a longer route, so a lot more people would travel on the off-peak service.' News of a settlement has been welcomed by commuters. However, Fine Gael's Swords area representative, James Lawless questioned its impact for the future.
'A number of very important competition law issues were raised and the fact that litigation has not taken place means that the implications for bus liberalisation and regulation in this particular case remain somewhat elusive,' Mr Lawless said.