The air operator eventually chosen to run the new service between the far north of the country and the Algarve can receive up to €650,000 this year.
Next year the budgeted subsidy for the Bragança-Portimão service is €2.6 million and in 2018 the figure is €1.95 million, all excluding VAT.
Thus the taxpayer has a signifiant multi-million exposure euros over the next three years to run an air service that has been created as ’the roads are not good enough.’
The Council of Ministers today published the support payments in the Official Gazette quoting some convenient European regulations about public service obligations.
There are apparent transport difficulties in the far north and there was a highly subsidised route run between 1997 and 2012.
The justification now is that "There remain accessibility difficulties with road routes to and from Bragança, Vila Real and Viseu, and the absence of a transport alternative that is more advantageous than the air," so the Government once again is launching a public service "to ensure the reduction of geographical and social distance."
This 'social necessity' justifies the new air link between Bragança and Portimão with stops in Vila Real, Viseu and Cascais whether a single person ever uses the route or not.
Last year the Ministry of Economy said that there would be a subsidy assigned to whichever company is awarded the route. The operator may have no incentive to publisice and promote the route as it should get paid a subsidy for any shortfall.
Whether the north is indeed briming with entrepreneurs keen to fly to Portimão to 'invest' remains to be seen but the amount that Portimão council is spending on the Alvor aerodrome with limitless budget is reminiscent of the heady days of former mayor Maneul da Luz.
The excercise is budgeted to cost the taxpayer a maximum of €7.8* million to run an air route that few want or it already would exist.
*I realise that the three annual figures do not add up to the total of €7.8 million, even after adding VAT at 23%...
