The Irish Coastguard's helicopter service is to be improved, and five new medium-lift aircraft are to be bought for the Air Corps.
Two of the new Air Corps craft will be for search-and-rescue, a third for support, and two for general military purposes.
The Minister for the Marine and Natural Resources, Mr Fahey, has renewed the contract awarded to Bond Helicopters (Ireland) Ltd for providing emergency response at Shannon.
The company will also provide two support aircraft, one equipped to the "same high standards" as the Coastguard's Sikorsky S-61N helicopters, according to the Minister. He said this would ensure "a world-class emergency helicopter service at all times".
The Air Corps is to get five new helicopters within the next two years.
Three models are considered as front-runners: the Eurocopter Cougar, an updated version of the Puma formerly leased by the Air Corps, which costs £12 million; the Sikorsky S-92 which is in production, at around £12 million to £14 million; and the Westland EH 101 Merlin, costing at least £14.5 million.