Christine M. Watterson.MaóThe President of the Balearic Government, Jaume Matas, has proposed that the present system of discounts for residents on flights between islands be scrapped and replaced by a single fixed price of 27.5 euros each way for everyone, including tourists.
This new tariff would be applicable from 1st January 2007 but is dependent on the State Government agreeing to transfer to the Balearic Government the amount of money required for the current system of residents´ subsidies, which is estimated at 18,736,500 euros for next year.
The total cost of operating the proposed scheme is estimated at 35,959,204 euros and the Balearic Government would have to provide the balance of 17,222,704 euros.
In addition to reducing the prices, the Government believes it would be feasible to increase the frequency of flights by 12.5%, especially first thing in the morning, late at night and at weekends. These proposals are based on the findings of a study carried out by the Department of Tourism in Mallorca.
The Government feels that introducing a "single price" ticket for both residents and tourists would stimulate demand and have a positive effect on tourism, economic activity and cultural and social life. The move would also rectify an injustice in that currently non-E.U. immigrants are not entitled to the discount, even if they are resident on the island.
Jaume Matas justifies the proposal by citing the need to find an "urgent" solution to the problem of the continual non-fulfilment of the declaration of public air service.
The proposal is that the Balearic Government would hire five ATR-72 70-seat aircraft, three of which would be based in Mallorca, one in Menorca and the other in Ibiza. The rental charge would account for 49% of the estimated cost of the scheme, a further 11% would go on fuel, 17% on handling services, 8% on airport taxes and 10% would be commercial capital.
Although the initial outlay required is large, the forecast is that the new scheme would attract 18% more passengers, increasing the number of inter-island travellers from the current 531,477 to 628,992 passengers per year.
The proposal is dependent on the State Government giving its approval to the scheme.