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Þóroddur Bjarnason argues changes to discount scheme Loftbrú will not solve high last-minute fares for rural residents. He proposes the government secure affordable fixed prices.
A government proposal could overhaul domestic flight subsidies in Iceland, with mayors and rural residents warning it may make travel far more expensive outside Reykjavík.
The Loftbrú scheme, which helps residents outside the capital with flight costs, will switch to a 7,000 króna per-leg discount. The Infrastructure Minister says a higher subsidy is under review.
Infrastructure Minister Eyjólfur Ármannsson had promised to consult countryside residents before making changes, but recent budget cuts were announced without their input, Vísir reports.
Residents of rural Iceland using Loftbrú for subsidised air travel to and from the capital will get a fixed ISK 7,000 discount per flight leg, replacing the current percentage-based system. The government says the change aims to make costs more predictable, but some local leaders are critical.
The Westfjords Trade Union said reductions to the Loftbrú routes could harm healthcare and prompt residents to abandon local air service.
From New Year, the Loftbrú scheme will provide a fixed discount of 7,000 ISK per flight leg for rural residents, replacing the existing 40% discount rate. The government hopes this will keep costs within budget after recent overspending.
