MIAMI – The President of the autonomous community of Tenerife Pedro Martin has revealed that the island will have its own airline next year. The Cabildo (Spanish system of government administration) would own 25% of the business.
The announcement came on the occasion of the 2021 public budget presentation. According to Martin, the launch is part of a €700,000 negotiated amendment between the government’s PSOE-Cs and Si Podemos parties.
This approach seeks to avoid the “permanent dependence” on tour operators and tourism businesses in air transport. While the Asociación Hotelera y Extrahotelera (Ashotel) of Tenerife started the initiative, small and medium businessmen of the island will promote the project.
Martin also said the principal interest is to participate in the market dynamic to reduce ticket prices to “reasonable” ones. In the current air transport framework, the Spanish government has 75% stake in air transport to the island. As a result, residents and tourist remain affected with the same prices.
This situation can change with Tenerife’s own government promoting a local airline and owning only a 25% stake.
Airline’s Project Details
Despite the announced plans, Martin said it was early to put the project in motion. In February, the involved parties will discuss the new public budget. Then, the airline’s promoters will sign the corresponding agreements to set the schedule and acquire the first plane. He added that this is the desired scenario, but it does not depend only on the government as it is not the senior partner.
In the beginning, the airline launch will include only routes that connect to Tenerife. However, Martin did not exclude regional government participation nor the addition of international frequencies. The goal of the project is to start a public-private participatory action in the connectivity area to have better services at fair prices, claimed Martin.
Featured photo: Tenerife South Airport (TFS). Photo: Southern Tenerife Airport.