354M allocated to subsidise flights for Canary and Balearic Residents

The Ministry of Development in 2016 will maintain a clear budgetary commitment to transport residents on islands, with a forecast of €449 million to claim 50% of airline and boat tickets for the citizens of the Canaries, Balearic Islands, Ceuta and Melilla. This was agreed yesterday at the Development Commission of the Congress of Deputies Secretary of State for Infrastructure, Transport, Housing, and Ático by President Julio Gomez Pomar.

The bulk of this money €354 million, will be to meet the 50% reduction in the price of airline tickets and €94M for an equivalent reduction in boat tickets. This overall is a significant increase of 16% to discount transport between the islands and between the islands and the mainland. The Secretary of State stressed on Wednesday that the goal is to finance budget “a key instrument for territorial organization”. This budget is completed with a lower, only €4.3 million, to support public service obligations (PSOs) in air routes. PSOs are a mechanism to compensate airlines coverage of certain air routes that are unprofitable but of public interest in the Canary Islands and cover certain routes to and from the less populated islands.

Development also subsidise the island territories for the transport of goods, up to €55 million which aims to prevent high freight rates and guarantee a minimum corporate competitiveness for the Islands. 

Source: ATC Press

 

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