Múlaþing council leader rejects fixed Loftbrú subsidy

Jónína Brynjólfsdóttir, chair of Múlaþing’s municipal council, says a planned change to the Loftbrú air travel subsidy would disadvantage residents outside the capital region. She welcomes plans to increase funding for the scheme but says the current system is more effective, mbl.is reported.

Under the current system, the state subsidises 40 per cent of airfares. Changes announced on a ministry website before the weekend would replace that with a fixed subsidy of 7,000 krónur per flight leg from the start of next year. Residents outside the capital region would continue to qualify for six subsidised legs a year.

After the plans drew criticism over the weekend, Eyjólfur told media he intended to review the amount and raise it to 9,000 krónur per leg.

Jónína says a fixed subsidy would be of limited help to people in eastern Iceland who have to buy expensive tickets at short notice. She also fears the change could affect airline pricing and push up the cheapest fares. In her view, a subsidy based on a percentage of the ticket price is a more sensible way to maintain access to domestic flights.

She says Loftbrú is about more than air travel: it also helps people outside the capital take part in community life, attend cultural events and sports competitions, and visit family and friends. Some children in the region grow up without having visited the National Museum, she said, while many children’s sports events take place in the capital region and travel can be costly for families.

Jónína also noted that last-minute tickets can be especially expensive for people travelling to a funeral. She said some residents had used the subsidy to cover journeys later reimbursed by Sjúkratryggingar, the health insurance agency, because they could not afford to pay the full airfare upfront.