More than £4.6m has been spent on government support for air routes during the current border restrictions.
Infrastructure Minister Tim Baker was asked in the House of Keys by Martyn Perkins (Garff) how much it cost to subsidise airlines on the Liverpool, Manchester and Heathrow routes in the last 12 months.
Mr Baker said the government’s maximum exposure between April 2020 and the end of the current arrangements was £5,455,366 but the actual cost in financial support was £4,672,910.
Mr Perkins asked how the government could ensure it wasn’t being ’unnecessarily loaded’ with other losses incurred by the airlines.
The Minister replied that it was ’absolutely imperative’ there were good financial controls.
He said these were bespoke contractual arrangements for the particular routes covered and they were in the form of a maximum underwrite with the cost to government reduced by the actual usage and revenue the airlines generate.
Mr Baker said the Liverpool, Manchester and Heathrow routes were vital for the island and no airline could commercial operate them while the border was closed.
Lawrie Hooper (LibVan, Ramsey) suggested there was an oversupply of flights during the lockdown.
.png?width=209&height=140&crop=209:145,smart&quality=75)


.png?width=209&height=140&crop=209:145,smart&quality=75)
Comments
This article has no comments yet. Be the first to leave a comment.