Spain's Association of Airlines (ALA) is claiming 600 million euros from the Spanish Government in respect of the residents' discount.
The ALA explains that as the government's budgets for 2024 were not approved, the sum allocated for the discount subsidy was extended - 560.81 million euros. This proved to be insufficient, and so there was a credit extension of 170 million euros in September. However, this was also insufficient.
The ALA says: "The budget allocation for air transport subsidies for residents of the Canary Islands, the Balearic Islands, Ceuta and Melilla is underfunded. The government allocated 560.81 million in the 2023 budget, which was extended. This was further extended by 170 million September 2024, which has been completely insufficient to cover the subsidies of up to 75% in the rates of regular air services that link these territories with the mainland."
The airlines point to an increase in the number of passengers entitled to the discount in 2024. The ministry of transport's allocation did not cover the cost of this. Most affected have been Air Europa, Binter, Iberia and Vueling as they operate the most island services and have advanced the most money in applying the discount.
"The ALA calls on the government to proceed as soon as possible in settling the multi-million euro non-payment owed to the airlines that connect the Canary Islands, the Balearic Islands, Ceuta and Melilla with the mainland for the subsidies to residents of 75% on the price of tickets advanced by these airlines."
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