Source · Select Committees · Transport Committee
Recommendation 16
16
Paragraph: 78
Implementing more flexible rules on the provision of Public Service Obligation routes can improve connectivity...
Recommendation
Implementing more flexible rules on the provision of Public Service Obligation routes can improve connectivity between the four nations of the UK. To improve domestic air connectivity, we agree with the Union Connectivity Review’s recommendation that the Government must revise subsidy rules to allow: a) multiple airlines to operate individual PSO routes, fostering a competitive market for regional services; and b) central Government to fund PSO routes between and within the UK’s four nations. UK aviation: reform for take-off 49 We also recommend that central Government agree which routes should be funded and how much funding should be allocated to those routes in consultation with the devolved Administrations.
Paragraph Reference:
78
Government Response
Acknowledged
HM Government
Acknowledged
The Government has noted this recommendation. The Department for Transport will continue to consider whether there are further opportunities to utilise Public Service Obligations (PSOs), alongside other policy measures, towards meeting our ongoing regional connectivity, union connectivity and levelling-up objectives. We welcome Sir Peter Hendy’s Union Connectivity Review and the government intends to respond to its recommendations, including those on PSOs, later this year. It is for the relevant local authority to identify when a route may require a PSO and provide evidence for assessment by Department for Transport. We continue to engage with the relevant Devolved Administrations on existing PSOs to Londonderry/Derry and Dundee.