East Iceland municipalities oppose fixed Loftbrú flight discounts

The Association of Municipalities in East Iceland (SSA) is urging the government to drop plans to replace percentage-based Loftbrú flight subsidies with a fixed cash discount, mbl.is reports. The association says the change would reduce support for rural residents and criticises the lack of consultation with municipalities.

In a resolution, SSA says passengers paying the highest fares would receive the smallest discount as a proportion of their costs under a fixed-rate system. “Residents do not deliberately book flights at the last minute,” the resolution says.

SSA wants to retain the current arrangement and strengthen it with more funding and a higher percentage discount on domestic flights. It says domestic air travel is an important part of public transport in East Iceland and calls on the region’s MPs to oppose what it describes as a cut to the region’s main transport link.

The association also says the government announced changes to an important regional equalisation measure without meaningful consultation with municipalities or regional associations. Local knowledge and experience should carry weight in decisions affecting the foundations of settlement and access to services, the resolution says.

SSA argues that the proposed Loftbrú changes are part of a wider pattern it says is weakening rural communities and businesses. It points to a planned 15.9 per cent increase in the kilometre charge, higher VAT on access to bathing lagoons, cuts to funding for regional development plans and business advisory services, greater centralisation of police districts, and proposals to reduce the number of MPs.

Together, the measures would increase costs, weaken regional decision-making and undermine the conditions for living and working in rural areas, SSA says. The association says East Iceland is developing and has significant opportunities for further growth, and argues that government support must come through funded actions, not just statements about the importance of rural communities.