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Local Subsidies To Airlines: FR & Others In Spain  
User currently offliner2rho From Germany, joined Feb 2007, 2742 posts, RR: 1
Posted (3 years 10 months 3 weeks 2 days 5 hours ago) and read 2559 times:

Often here on a.net we talk about subsidies from local governments given to airlines to operate certain routes or maintain certain aircraft & crew bases, specially when it comes to FR in Europe. But a lot of the time these discussions are based on speculation and lack real numbers. Well, here's an interesting article detailing the overall situation in Spain, with the local subsidies received by Ryanair, Vueling, Air Nostrum (IB Regional) and Air Berlin. The article itself is in Spanish but the attached graphic is self-explanatory and sums it all up quite well.

A summary:
- FR 80.9 million (sum of various agreements ranging from 2008-2014)
- VY 6.61 million (2010 only)
- Air Nostrum 3.76 million (2010 only)
- AB 0.925 million (2010 only)

This is a study done by financial newspaper Expansion with the [little] information that is available. The newspaper assumes that there are likely more deals that have not been disclosed to the public.

http://www.expansion.com/2010/12/21/...mpresas/transporte/1292886660.html

So, here's a chance to discuss with actual numbers for a change!

1 replies: All unread, jump to last
 
User currently offlineQuokka From , joined Dec 1969, posts, RR:
Reply 1, posted (3 years 10 months 3 weeks 1 day 15 hours ago) and read 2282 times:

An interesting article that raises a number of questions. When is a subsidy a subsidy is an obvious one.

If I have read it correctly, the article gives an example where Vueling is the only airline serving Ciudad Real and the airport could not operate without VY's presence - it is virtually bankrupt. To ensure VY continues flights, the airport offers discounts/ rebates on fees. This way the airport at least makes some money rather than none. Sure, VY benefit from lower fees but it could be said that it is the airport that is being subsidised by the community in order to provide jobs for locals.

A question that could be asked is are there too many secondary, or even tertiary airports? If airports need to be offering massive discounts to attract the likes of FR, should they have been built in the first place?

The ironic part of the report is the reference to AF complaining about subsidies to FR. How many millions has AF received over the years?


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