The Aviba travel agencies association in the Balearics is calling for the residents' travel discount to be increased from 75 to 80%. The president, Pedro Fiol, believes this is the only way to offset the impact of an increase in the price of inter-island flights, one of 11.50 euros for a round trip.
He argues that a five per cent increase would not have a significant impact on state coffers - the Spanish Government subsidises the discount - but would be very important for businesses and consumers on the islands. "Increasing the discount to 80% would mean that the increase in the price of inter-island flights would be practically eliminated, and this would allow our companies to compete on an equal footing with mainland companies."
As well as business competitiveness being affected, he suggests that teachers and healthcare workers will be more reluctant to work on the smaller islands due to the higher travel cost. "If you add up the increased cost of each trip, the total is significant. The price increase will force some professionals to reconsider their careers on the other islands."
"Prices should be regulated to ensure the profitability of the route and to encourage interest from airlines. But what has surprised us is this sudden price increase. The Public Service Obligation flights for the Canaries and the Balearics are not routes that are operated exclusively, which means that competition between airlines maintains a certain balance in the fares offered.
"We're talking about a 30% increase on the most expensive fare, considered a flexible fare, which is one of the most popular for inter-island routes."