The Bulgarian state proposes subsidies for key international air routes

The Bulgarian state will subsidise airfares if an airline operates routes that are loss-making but considered important to the country. This is envisaged in a draft ordinance drawn up by the Ministry of Transport, the Bulgarian News Agency (BTA) reports.

Bulgaria has not previously provided this type of support for air transport, although it is practised in many European countries. The tenders are organised at European level and are open to airlines from other countries as well.

Four conditions must be met simultaneously for a subsidy to be granted. First, transport needs must be impossible to meet under reasonable market conditions. Second, the measure must ensure a minimum level of connectivity for the region concerned. Third, the public service obligation must be proportionate to the objective pursued. Fourth, the objective must not be achievable through other appropriate means.

The amount of the subsidy must not exceed the net costs incurred.

Edited by Ivo Ivanov