rfields5421 From United States of America, joined Jul 2007, 7607 posts, RR: 32
Reply 2, posted (2 years 8 months 2 weeks 5 days 1 hour ago) and read 4754 times:
Subsidies vary in type.
For example in the United States - Essential Air Service (EAS) is a cash guarantee to the airline for the route if ticket sales do not raise a certain amount - these are 19 passenger or smaller aircraft providing service to small cities.
As mentioned above, some other countries have similar programs.
The biggest subsidy is tax breaks - where an airline receives a reduced, or no, tax rate in return for service. In the US, these can be done by local authorities. Ryanair makes pursuing such subsidies a key part of their business model.
Another subsidy is reduced or free rent at airport terminals, subsidized construction of gate areas, etc.
VV701 From United Kingdom, joined Aug 2005, 7401 posts, RR: 17
Reply 4, posted (2 years 8 months 2 weeks 5 days ago) and read 4683 times:
In the UK the Scottish Government subsidises essential flights to the remoter areas of the Highlands and Islands through its Air Discount Scheme.
Anyone who lives in Colonsay, Islay, Jura, Orkney, Shetland, the Western Isles, Islay or, on the mainland, Caithness and North West Sutherland can apply for membership to the Air Discount Scheme. As members they will obtain a 40 per cent discount on the flight ticket price for flights within the defined region and to Scottish hub airports. The Scottish government will pay the airline the residual cost of the ticket.
The scheme is approved by the EU.
Google "Air Discount Scheme" for more information - sorry I cannot make a link work.