News article

£56 Million Air Connectivity Fund: Start-up Aid for Regional Airports to Launch New Routes

Start-up funding for airports and airlines airports in the UK with fewer than five million passengers per annum help launch new routes.

The Regional Air Connectivity Fund: Start-up Aid is a fund to support public service obligation (PSO) routes and start-up aid for new routes from regional airports. The programme focuses on those airports that handle fewer than five million passengers per year, providing this meets new European Community aviation State Aid guidelines for airports and airlines.

Airports and airlines are being urged to bid for government funding in the next year to help launch new routes. The aid will boost connectivity, increasing trade and supporting jobs in the regions.

£56 million is available to cover three years of financial support for start-up aid, with £17.5 million being made available to bids in 2015/16 and around £20 million a year for each of the remaining years.

Funding can be provided to cover up to 50% of airport aeronautical charges. Where funding is provided based on passenger number flown, funding can only be provided to cover either the targeted load factor for the route to be sustainable or 75% load factor (whichever is the small amount).

The programme is open to airlines and airports in the UK with fewer than five million passengers per year.

Any bids for funding would need to come from a consortium made up of at least:

• airport - less than five million passenger per annum;
• airline - that will operate the route; and
• where suitable, the involvement of local accountable bodies such as (devolved administrations, Local Authorities or LEPs). It may also be suitable in some incidences for local business to be involved or other trade bodies such as tourism authorities Chambers of Commerce etc.

The deadline for initial applications is Wednesday, 25 February 2015.

Region

• United Kingdom