The Balearic and Canary Islands are at a substantial risk of losing their air connections. The airlines have issued a warning, claiming that the central government’s “non-payments” for subsidised tickets for island residents are “suffocating” the companies. The companies have been obligated to advance these subsidies, which comprise 75% of the ticket price.

The Association of Airlines (ALA) has denounced this situation, asserting that certain companies that operate flights between the islands and the peninsula “could be compelled to cease operations on some of these routes or reduce frequencies as a result of the unsustainable situation and economic suffocation caused by the Government’s non-payment of approximately 810 million euros by January 2025.”

In Spain, the demand for these connections has increased by 9.6% since 2023. This circumstance is not unfamiliar to Alicante-Elche Airport. From the El Altet terminal, numerous airlines operate routes between the Balearic Islands and Alicante and the Canary Islands. Aena data indicates that traffic with these islands comprises 34% of the national total recorded in 2024.

The situation is concerning, as Palma de Mallorca is the second busiest domestic route at the Alicante terminal, with 497,547 passengers in 2024, representing an 8.5% increase from the previous year. The sixth and seventh busiest routes at the airport are Ibiza, with 176,592 passengers (26% more), and Tenerife, with 155,000 passengers (19.9% more). With 57,460 passengers in 2024 and a 39% increase, Gran Canaria is the eleventh busiest domestic connection.

Vueling, Ryanair, Iberojet, and Air Nostrum operate flights to Ibiza, while Air Europa, Iberojet, Ryanair, Enter Air, and Vueling operate flights to Palma de Mallorca. Ryanair, Vueling, and Enter Air provide connections between Tenerife and the Canary Islands, while Vueling serves Alicante and Gran Canaria.

The situation has been further complicated by the postponement in the General State Budget (GSE). The 2023 GSE was allocated 560.81 million euros by the government, an amount that ALA maintains has been “significantly exceeded” by demand that has exceeded expectations. ” They assert that the Contingency Fund has contributed an additional 170 million euros to this sum in order to finance credit modifications; however, they maintain that it still falls short.

ALA has expressed apprehension that the new extension will result in an increase in this debt to €1.5 billion. Javier Gándara, the president of the association, maintained that this allocation is “inadequately funded” and that it has been extended until 2023, rendering it “completely inadequate to cover the subsidies of up to 75% on air service fares.”

According to Gándara, the circumstance “is compromising the financial sustainability of these airlines to the point that, if this continues, it could make the operation of some of these routes unviable, seriously affecting the connectivity of the Canary and Balearic Islands.” Consequently, the president of ALA is urging the government to promptly pay the companies that operate these routes.

Simultaneously, Gándara emphasises the necessity of “correcting this situation in the future with sufficiently funded and more realistic budget allocations.” ALA anticipates additional delays in the upcoming year, during which the allocation for subsidies for residents will remain at €60.8 million. The anticipated expenditure for this year is €1.2 billion, and the outstanding €810 million must be added.

Airlines are merely intermediaries who are accountable for the program’s execution. They act as collaborating entities of the Administration in accordance with the established regulations, applying the legally established subsidy percentage at the time of ticket purchase and subsequently paying the Administration, in this case the General Directorate of Civil Aviation (DGAC), the remaining amount after the passenger has completed the trip subject to the corresponding discount.

The DGAC is accountable for the management of the budgetary appropriations that have been allocated to cover the subsidy and for the payment of the subsidy amounts to the airlines. In summary, the airlines apply the subsidy to the resident’s ticket, which the government must subsequently settle through the DGAC, using an expandable appropriation from the General Budget. The Ministry of Finance reserves the right to increase the allocated quantity in the event that it is surpassed.

Torrevieja experienced a stroke of luck on Sunday 16th March. In the draw that took place at weekend, a fortunate individual was awarded €84,942.06 for matching fourteen times. The winning ticket was validated in the receiving office number 32,710, which is situated in the Los Balcones residential area at the establishment “Kiosko d’Aaron,” on Ángel García Rogel Avenue.

In addition, five additional successful tickets were selected in other regions of Spain, with fourteen matches. In particular, two wagers were validated at Lottery Office No. 270 in Barcelona, while the other winning tickets were validated at No. 410 in Madrid, No. 2 in Fuenlabrada (Madrid), and No. 48,025 in Haro (La Rioja).

This Monday, the Torrevieja City Council initiated an initiative to reduce the occupancy of public spaces on Paseo de Juan Aparicio by restaurant terraces.

The local hospitality industry’s golden mile’s numerous terraces had been violating the ordinance for years by occupying more space than their permits permitted, as evidenced by the use of a few litres of yellow paint, chalk, masking tape, and the labour of municipal employees. In comparison to others, some had implemented numerous square meters of public space into their operations.

Federico Alarcón, Councillor for Safety and Occupation of Public Spacessaid that the City Council would verify compliance on-site after reinstating the payment of the fee for occupation of public spaces, without evaluating whether restaurateurs were complying with the ordinance.

That is to say, the amount that hospitality businesses have been paying since the tax was reinstated in response to the pandemic has been adjusted to reflect the actual space they occupy on a daily basis and the square meters defined by the municipal ordinance for that specific area.

Torrevieja was one of the tourism municipalities that maintained its tax exemption for the longest period following the pandemic. There are four complete years between 2020 and 2023. During this period, local regulations were also exceptionally adaptable, as businesses demanded benefits in the face of extremely adverse circumstances and installed an increased number of chairs and tables, which were protected by health and safety regulations.

Torrevieja City Council has also established a reputation for being one of the most permissive in terms of permitting the occupation of public space, with a preference for the profitable use of hospitality businesses.

The municipality alone generates 1.4 million euros annually from the occupancy of public spaces by terraces, excluding street markets and other taxable activities in public spaces.

“Faced with the need to return to the pre-pandemic line or create an intermediate one, we have decided to return to the previous one,” according to Alarcón. The last time an occupancy limit line was ordered to be drawn, leaving tables that exceeded it visible and readily distinguishable on the ground, was over seven years ago, during the coalition government (2015-2019), when Javier Manzanares was the councillor for the area.

The promenade’s pavement, which is also referred to as Las Rocas, had already begun to discolour after an extended period of time. The PP municipal government discontinued the signage of the COVID measures that were implemented in 2020 to guarantee that the hospitality industry could continue to operate with specific health precautions.

Upon the return of normalcy following the pandemic, residents residing on the front lines had identified the absence of control over the occupation of public space by hospitality businesses. Terraces encircled benches along the promenade, and establishments relocated their tables and chairs just over three meters from the seafront. The permissiveness of the municipality extends to the incorporation of permanent installations, which are provided with designated spaces on the canopies, palm trees, verdant areas, and streetlights on the promenade.

This situation has resulted in significant traffic congestion at pedestrian crossings over the past two summers, as the terraces were required to accommodate unlicensed street vendors, known as the “top manta.”

Yesterday, Monday 17th March, the Municipal Public Road Occupation Department commenced the process of removing chairs and tables from the majority of the hospitality establishments along Juan Aparicio Promenade. Signs have been posted by municipal labourers and the Local Police officer who is responsible for enforcing the ordinance. These signs will be posted from the Hombre del Mar area and will extend along the promenade to Punta Margalla, including those situated on Playa del Cura.

Councilman Alarcón clarified that the Association of Hospitality and Regional Businesses, with which he maintains a close relationship, had been warned and had informed its members. The group’s board of directors has not responded to this newspaper’s attempts to contact them.

Nevertheless, the employees of the establishments were evidently perplexed, as they were required to remove a significant portion of their terraces after the installation. Additionally, they were uncertain about how to dispose of the remaining furnishings. The issue has been temporarily resolved by the rain, which has decreased the number of individuals who can fit in the fixed installations on the terraces that are already covered.

The Libertad promenade, which is one of the main promenades, has been closed to the public since March 12th as a result of the renovation of the port and the removal of vendor stalls, which is also a result of the municipal initiative. The pedestrian area has been further restricted and will be redirected to the Juan Aparicio seafront promenade in anticipation of Holy Week.

Conversely, the City Council has temporarily suspended the finalisation of the new occupancy ordinance due to its extensive nature, which encompassed a wide range of uses, including the amusement park, bohemian craft market, and terraces. Alarcón observed that the current proposal is to divide the text into distinct ordinances to ensure that they are tailored to the specific use.

The City Council’s intention to implement an external software application to facilitate the payment process for the use of public roads has also been impeded. The municipality contemplated transferring the territory to Suma Gestión Tributaria after promoting the project. However, the autonomous body of the Provincial Council is uncertain about certain aspects of this delegation of functions, and the municipality has temporarily suspended this initiative. The councillor also expressed his optimism that the planned reinforcement of Local Police officers will enable the addition of additional officers to the inspection of public roads throughout the year.