Mr. Kevin Thompstone:

The critical thing we are trying to achieve is lower airport charges for airlines. If they have lower airport charges, that increases their potential to restore routes they were previously providing. When we looked at what was happening around the world, we found that the airport in Copenhagen, for example, is providing airport charge rebates, starting at 45% this year, to airlines that are connecting Copenhagen to global hubs. We found this was being done in Cyprus as early as last summer. In Spain, the authorities have introduced a system that is very straightforward and simple. They are saying that a rebate will be given on airport charges pro ratabased on the level of traffic this year compared to that in 2019, before Covid.

The critical piece in our model is that the Government would provide the airport with the cash needed to pass on lower airport charges to airports. Why do we say "to airports"? It is because the airports currently do not have any income stream because the airlines are not flying. If they can be got back flying, an income stream will come in. The airports need the income stream to run their operations. It is for a defined period. We have modelled from July of this year to June 2024 to coincide with the optimistic scenario coming from EUROCONTROL. The idea is that, for the defined period, regional state airports, in particular, would get a sum in euro per passenger and, in turn, pass on the saving to the airlines, but with the incentive that if the airline hit a threshold based on 2019 levels of traffic, it would get back a portion of its airport charges pro rata. We start the rate at 35% this year, rising to 50% next year, and then to 70% and, ultimately, 80%. Indeed, if an airline reached a higher level, it would also get back a pro ratarebate. If it reached 100% of its 2019 level, it would get back the full rebate. The arrangement is designed to be very straightforward and easy to understand. If 2019 levels are reached, one gets back a proportion of the airport charges.