Council defends decision to scrap publicly subsidised London flight

Cornwall Council leaders say they want Cornwall Airport Newquay to grow and become financially sustainable without relying on public subsidy.

It follows a cabinet decision to end the Public Service Obligation subsidy for the London Gatwick route, currently operated by Skybus and jointly funded by the government and the council.

The council said the government’s contribution to the scheme had been reduced, and continuing the service would require between £14m and £16m of taxpayer funding over the next four years.

Skybus confirmed it will stop flying the route from 31 May after its tender to continue operating the PSO service was rejected. Customers with forward bookings are being fully refunded.

Councillors were told the government’s share of the subsidy had fallen from 66.7% to 50%, and that none of the bids received met the required criteria while remaining affordable.

Skybus say there were the only bidder.

Council leader Leigh Frost said the authority had been “legally not allowed to accept a non-compliant bid” and that no compliant bids had been submitted, despite what he described as the “most flexible tender” the council had offered. He said the council would now engage with the market to explore how the route could continue.

Deputy leader Adam Paynter said the aim was to attract commercial routes to ensure the airport becomes financially sustainable without public subsidy. He described the airport as a “vital piece of transport infrastructure” and said the council wanted it to thrive in the years ahead.