Recommendation 16

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.