The Partido Popular opposition in Spain's Congress has attacked the veto of a Senate proposal that would have provided 1.2 billion euros to pay airlines for the 75% residents' discount.
"This demonstrates the government's lack of willingness to support the regions most dependent on air connectivity." The party warned that the consequences of Tuesday's veto could include higher ticket prices as airlines will be forced to pass on costs arising from insufficient funding for the discount. It suggested that there could be a loss of routes and frequencies, which would also have a potential impact on Spanish tourist arrivals. The discount applies to the Balearics and the Canaries as well as to the two north African autonomous cities of Ceuta and Melilla.
Last week, the Senate approved a motion for amendment of air navigation and safety law that would have enabled the provision of extraordinary credit to airlines totalling €1.2 billion. Airlines bear the initial cost of the discounts but are then reimbursed. However, the funding for this has been both insufficient and delayed.
Spain's Airlines Association (ALA) says the government is turning its back on the two regions and the two cities. The association insists that it is necessary to resolve the funding situation as soon as possible, the initial problem having stemmed from budgetary underfunding in 2023.
According to ALA figures, at the end of March 425 million euros were still owed for 2024, and another 1.25 billion euros are due in 2025. The state budget for 2025 has an item for 560 million euros for this year, the same as last year. "If measures are not taken as soon as possible, the debt borne by airlines will exceed one billion by the end of 2025."