Airline slams decision to end flight subsidy

Airline bosses have said a council's decision to stop subsidising flights between Newquay and London "will prove incredibly damaging".

The route to Gatwick currently provided by Skybus is under a Passenger Service Obligation (PSO) contract jointly funded by the government and the council.

The government's contribution has been reduced and Cornwall Council said the service would need a taxpayer subsidy of between £14m and £16m over the next four years if it was to continue.

Skybus' managing director Jonathan Hinkles said the airline would stop its service by 31 May after its tender to continue the PSO route had been refused and customers were being fully refunded for forward bookings.

On Friday, councillors were told the government's part of the subsidy had been cut from 66.7% to 50% and the tenders received had not been able to be "lawfully and affordably provided".

They elected to pursue a commercial service in its place.

Hinkles said Skybus had offered four options to the council to continue the PSO from 1 June 2026 and had been the only airline to tender.

He said the council had not considered the bid or entered into any dialogue over a single disputed element of Cornwall Airport Newquay's fees and charges.

Hinkles said he had "grave concerns" about the impact the council's decision would have on Cornwall's connectivity, employment in the aviation sector and the viability of Cornwall Airport Newquay.

"Even if a limited replacement London service now appears, the loss of income to the airport based on huge discounts it has to offer will render its financial position wholly unsustainable," he added.

Following the collapse of Eastern Airways in November 2025, a temporary deal was reached with Skybus to operate the route between Newquay and Gatwick until May.

Hinkles said: "It is hugely sad that their efforts and commitment could not be reciprocated with fulsome support of the council, which has clearly had its own agenda that will prove incredibly damaging to aviation in Cornwall for years to come."

John Brown, chief executive of Cornwall Chamber of Commerce, told the Local Democracy Reporting Service Cornwall's transport network could not "absorb this loss".

He said: "We understand the financial pressures – two procurement exercises failed to attract compliant tenders, the Department for Transport has cut its contribution from 66.7% to 50% and aviation costs have risen sharply.

"But the chamber believes this decision carries risks that far outweigh the savings."

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