Government to fully fund regional flights despite losses

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				Government to fully fund regional flights despite losses

Finnair planes at Helsinki-Vantaa airport in Vantaa, Finland. Photo: Vesa Moilanen / Lehtikuva

The Finnish government will continue to finance regional flights between Helsinki and five provincial airports in full, Transport Minister Lulu Ranne (Finns) announced on Monday.

The decision reverses the government’s earlier position. Last month, Ranne said local municipalities would be expected to help fund the unprofitable routes. Now, the state will pay the entire cost of operations.

In a post on X, formerly Twitter, Ranne said the move was made “in the interests of regional vitality”.

Finnair operates the routes to Joensuu, Jyväskylä, Kajaani, Kokkola-Pietarsaari and Kemi-Tornio. The flights have required state subsidies since 2021, following a drop in passenger numbers during the pandemic. An agreement signed in 2023 obliges the airline to operate the routes until March 2026.

The goal was for the routes to return to profitability post-Covid. That has not occurred.

An Yle investigation earlier this year revealed that ticket revenue covers only a small portion of operating costs. A single round-trip from Helsinki to Kemi costs the government over €8,500. Across all five routes, the losses amount to several million euros annually.

Finavia, Finland’s state-owned airport operator, has also questioned the sustainability of the subsidies. In January, it recommended ending the financial support.

The flights have also drawn environmental criticism. Most routes are under 400 kilometres in distance, and alternatives such as train travel are available. Advocacy groups and opposition parties have argued that public funds should not support high-emission travel where rail infrastructure exists.

Despite the concerns, the government has framed the flights as a necessary measure to support business, mobility and public services in remote areas. The Transport Ministry has not indicated how long the full subsidies will remain in place beyond 2026.

No further budgetary breakdown has been provided.

HT

Source: www.helsinkitimes.fi

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