PPRuNe Forums - View Single Post - Regional Air Connectivity Fund - 19 routes
Old 23rd Aug 2015, 10:40
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Cyrano
 
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Just a note on this business of "funding". These aren't PSO routes where the taxpayer is essentially footing most of the bill for operating the route. From section 2.3 (7) of the original UK notification to the European Commission (PDF):
The proposed aid to support the launch of new routes is intended to cover up to 50% of the airport charges incurred in operating the new route.
Airport charges will typically only account for maybe 10%-15% of total operating costs of a route (less if you take discounts into account). So this Regional Air Connectivity funding has the potential to subsidise 50% of this, or say 5%, of total operating costs. Yes, it is a small help to the route economics, but not a significant one.

IMHO it's very clear that airlines have applied for routes which were in any case candidates for operation in the next year or two, on the basis that if they can get a bit of a helping hand from the taxpayer they won't refuse it.
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