More than £7.5m in subventions for airlines

Financial support introduced following Covid pandemic

More than £7.5m has been paid to airlines in government subventions since the 2021 General Election.

The figure has been revealed in response to a Tynwald question from Douglas Central MHK Chris Thomas.

Mr Thomas asked what subventions have been provided to airlines during this administration, where the funds have come from and how the subventions are evaluated against their objective.

Treasury Minister Alex Allinson confirmed just over 2.1m was provided in the 2022-23 financial year, more than £4.1m the following year and £1.325m so far in the current financial year.

The money has come from the contingency fund and economic strategy fund.

Dr Allinson lists several reasons for providing such subventions, including securing connectivity to London for business and leisure, securing Northwest routes and patient transfers and improving resilience by ensuring more than one carrier on core routes.

He goes on to say when the subventions were introduced it was at a time of reduced connectivity as the airline industry was recovering from the effects of the Covid-19 pandemic, resulting in limited capacity.

The Department for Enterprise had identified limited options for customers with hugely variable pricing.

As a result, objectives for airline subventions were identified, including ensuring reliability, frequency and an Island-based carrier.

Dr Allinson says the subvention has ensured stability to all of these aspects.