If the service continues it is likely to cost Cornish taxpayers between £14 million and £16 million over the next four years
Passengers board a Skybus plane at Newquay airport(Image: Skybus)
Cornwall Council’s ruling cabinet is likely to agree to drop the daily subsidised flights from Newquay to London. The council has revealed that the service will likely require a taxpayer subsidy of between £14 million and £16 million over the next four years if it continues.
Cornwall’s air connectivity with London has been supported through Public Service Obligation (PSO) arrangements for more than a decade. It was first introduced to maintain the viability of the route to the capital when the commercial market could not sustain year-round operations.
Cornwall Council, which owns Cornwall Airport Newquay, and the Department for Transport (DfT) awarded a multi-year PSO that was operated by Flybe until the airline entered administration at the onset of the Covid pandemic, resulting in the collapse of the service.
It was then resurrected and awarded to Eastern Airways, which also went bust in November. An interim tender, which ends in May, was then awarded to Cornwall’s Skybus, which has had issues with finding suitably sized aircraft and has seen a 20 per cent seat occupancy.
Cornwall Council’s Liberal Democrat / Independent coalition administration has been recommended by officers to vote in favour of dropping the PSO and to push for a commercial operation, although it is unlikely to run on a daily basis.
To sign up to the weekly Cornwall Politics newsletter click here.
The move has come after the council failed to attract tenders during two PSO procurement bids over the past nine months. A report to cabinet stated that “both procurements failed to attract a tender that could be lawfully or affordably awarded, with bids significantly exceeding the council’s affordability cap”.
We understand that a number of well-known commercial airlines are interested in flying from Cornwall but not within the constrictions of the PSO.
Ryanair currently operates direct commercial flights from Newquay airport to London Stansted up to four times per week, with typical prices between £30 and £75 for a one-way ticket.
The PSO service provided by Skybus operates daily flights between Newquay and London Gatwick, but is more expensive with flights starting from £79.99 for a one-way ticket.
“The commercial operator currently delivers around 40,000 passengers per year whilst offering competitive ticket pricing. This gives confidence that in the event of the removal of the PSO that Cornwall will not become isolated from the capital,” says the report to cabinet by Cornwall Council’s strategic director Phil Mason and Gloria Ighodaro, its interim service director for economy regeneration.
The cabinet report states: “Since the 2021–2025 PSO was awarded, the operating environment has changed materially. National policy now requires a 50:50 funding split with the Department for Transport, aviation costs have risen sharply and operator appetite has reduced.
“Market feedback indicates that a compliant PSO would likely require public subsidy of £14 to £16m over four years, or major reductions to airport charges, neither of which are financially viable for the council or the airport.
“While commercial provision may offer less winter resilience than a PSO, the associated risks are manageable and time‑limited.
“The primary impact of not awarding a PSO will be a short‑term impact on Cornwall Airport Newquay’s revenue income until commercial activity grows. Awarding the PSO after the retender would have exposed the council to significant legal, financial and governance risk.
“Not awarding a PSO avoids an unsustainable subsidy commitment, maintains compliance with procurement law and allows the market to respond to modern travel patterns. The council will continue to work with the Department for Transport to ensure Cornwall’s strategic connectivity needs remain recognised and to explore future opportunities for national support.”
The recommendation to cabinet is that “the future approach to securing regular air connectivity between Cornwall Airport Newquay and London should be based on the needs of the business community, developed on a commercial basis and led directly by Cornwall Airport Ltd”.
Council leader Cllr Leigh Frost told CornwallLive: “We have to make this decision very carefully in the best interests of the taxpayers of Cornwall within our tight budget.”
The matter will be discussed, alongside a sign-off of this year’s council budget, at a cabinet meeting on Friday (February 13).
Join CornwallLive’s WhatsApp community for top stories and breaking news sent directly to your phone
CornwallLive is now on WhatsApp and we want you to join us. Once you sign up for our updates, we’ll send the latest breaking news and biggest stories of the day straight to your phone.
To join our community, you need to already have WhatsApp. All you need to do is click this link and select ‘Join Community’.
No one will be able to see who is signed up and no one can send messages except the CornwallLive team.
We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don’t like our community, you can check out any time you like.
To leave our community click on the name at the top of your screen and choose ‘Exit group’. If you’re curious, you can read our Privacy Notice.
Click here to join our WhatsApp community.