NO DISCOUNTS

THE Spanish government is looking at ways of reducing the so-called resident discount on flights and boat travel between the islands and to the mainland. At the moment all Balearic residents receive a discount of 50 percent but the Spanish government is planning to either reduce the rate or scrap it all together. Now, obviously the Balearic government is not impressed especially as there are elections next year but the central administration in Madrid needs to save money. If the government goes ahead I am sure that there would be a major outcry both from residents and the airlines and shipping companies.

Travel between the islands, which is not cheap even with the discount, would fall dramatically. This is another case of the central administration in Madrid discriminating against the Balearics. Already the islands pay far more to Madrid than they get back in direct investment. The move would be so unpopular that it could even tip the balance at the next local elections. I think the best solution would be to maintain the discount but at the same time encourage other airlines to operate inter-island routes. If fares were lower thanks to competition then the government could ponder reducing or scrapping the discount. But not until then.