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Aviation: Finance

Volume 487: debated on Monday 26 January 2009

To ask the Secretary of State for Transport what oversight his Department has over the allocation and use of (a) route development funds and (b) other sources of support for air services. (250656)

A regional body wishing to establish a route development fund to provide start-up aid for new air services will be expected to sign up to the Department’s Protocol governing the operation of such funds. The Protocol has been published on the DfT website at:

www.dft.gov.uk/pgr/aviation/domestic/anationalprotocol forukrouted2873

An air route on which a Public Service Obligation (PSO) has been imposed may be eligible for subsidy under the rules set out in Regulation EC 1008/2008. Any application to impose a PSO must be approved by the Secretary of State.

Any other proposals to provide funding for air services must take account of European guidance on the use of State aid. Any resulting State aid notification to the European Commission must be cleared by the Department.