East Iceland municipalities urge minister to halt Loftbrú changes

The Association of Municipalities in East Iceland says the government will proceed with changes to Loftbrú, an air travel subsidy programme, despite its request to pause them. The association’s board expressed “great disappointment” after meeting Infrastructure Minister Eyjólfur Ármannsson and ministry staff on Wednesday, mbl.is reported.

The board had asked the minister to delay the planned changes so the government and local authorities could work together on a future arrangement. According to a statement from the association, Ármannsson said the decision stood and the changes would go ahead.

At the meeting, the board criticised what it called a lack of consultation. It said Loftbrú was originally developed in close cooperation with regional associations of municipalities, the regional development agency Byggðastofnun and members of parliament. The board said it was unacceptable to announce significant changes without meaningful consultation with the local authorities and regional organisations directly affected.

The planned changes would replace a subsidy of 40 per cent of the fare with a fixed payment. The association said this would give passengers paying the highest fares the smallest support relative to their costs, particularly affecting people who need to travel at short notice.

Domestic flights are one of East Iceland’s main public transport links, the association said, warning that the changes would make it harder for residents to access services. It also said the planned changes could significantly weaken Loftbrú’s equalising effect and run counter to its original goals of improving living conditions and access to services for people outside the capital region.

The board said it believed there was not a parliamentary majority for unilateral changes, based on statements by governing-party MPs. It renewed its call for the minister to delay the changes and begin meaningful consultations. Loftbrú was established in 2020.