Raquel Sánchez announces a pilot project to declare the Madrid-Barcelona air route as OSP with maximum price

After a meeting with the president of the Balearic Islands, Francina Armengol, the minister explained that they are working to declare the route, this summer, as a public service obligation on a temporary basis, which involves setting maximum tariffs. It has advanced that contacts have already begun with the airlines and departments of the Balearic and Canary Islands to activate the offer. The owner of Mitma has also reported that work is being done on the new contract to strengthen the Maó-Madrid aerial OSP, which will begin in November 2023. He has defended the need to guarantee connectivity and mobility in the Balearic Islands and that connections with the peninsula develop in terms of equality and equity, without forgetting sustainability. The minister has presided over the opening ceremony of the construction of 35 public houses for affordable rent in Es Castell, which have almost 1.3 million euros from European funds NextGenerationEU and which will be a reality in the summer of 2024. The Recovery Plan contemplates the transfer to the Balearic Islands of just over 124 million euros to rehabilitate 8,737 homes and their environments, and to build 492 social rental homes. The minister has secured the Agreement for the financing of the Palma Tram is well advanced.

The Minister of Transport, Mobility and Urban Agenda, Raquel Sánchez, has announced the choice of the Madrid-Barcelona air route to be part of the pilot project of declaration of obligation air service (OSP) with price limitation, given the increase in ticket prices in the connections between the Island and the Peninsula. The “pilot” initiative, which it hopes will be approved this summer, will thus establish a maximum tariff on the route between Menorca and Barcelona with the main objective of avoiding “peaks” of very high prices, and always conditioned not to involve excessive intervention in the market or to affect connectivity.

“The design of the project, which we carry out simultaneously in the Balearic and Canary Islands, is already well advanced and we have already started contacts with the airlines and we will continue, of course, with the affected departments of the two communities with whom we have already had the first conversations and we are working to be able to approve it in the summer”, said the minister at a press conference held after having a meeting with the president of the Balearic Government, Francina Armengol, with the president of the Menorca Island Council, Susana Mora, and with the Minister of Mobility and Housing, Josep Marí.

As he pointed out, this is “a sensitive project because it represents an exception to the rules of the European Union market in air transport”. “Therefore, we need not only to accurately match the terms and conditions of the future OSP to ensure the maintenance of connectivity, but we also need a consensus with all stakeholders to ensure its success,” he added.

This pilot project will analyse market behaviour and evaluate its results over the period to be determined, and will make it possible to move forward with precise knowledge, avoiding taking measures that have undesired effects in an area as important as connectivity in the islands.

OSP improvements

In relation to the OSP of other air routes of the island, the minister has informed that work is being done on the new contract of the OSP Maó-Madrid that will begin in November 2023. “We are going to introduce modifications of the current OSP that is reaching very high occupancy levels, to increase the minimum frequencies in festive periods and, at the proposal of the Government,” he said. Specifically, a minimum of three daily frequencies will be established, which must be met on dates such as the Constitution, Christmas, St. Antoni or Holy Week, and the places offered will be increased by 5,000 per year, from 74,000 to 79,000.

In addition, he explained that the obligation to provide the service of accompaniment of minors will be introduced, a service that is also being analyzed to include as mandatory in the inter-Balearic OSPs, which requires a modification of the current regulations.

Ensure Islands Connectivity

For the minister it is essential to guarantee connectivity and mobility in the Balearic Islands and that connections with the peninsula develop in terms of equality and equity, without forgetting sustainability. In this regard, he stressed that all the transport and mobility infrastructures promoted by the Ministry “have as their essential premise to collaborate in the decarbonization of transport and to comply with the most rigorous environmental sustainability criteria to minimize their impact on the environment.”

In this context, he recalled the 76 million euros of the Recovery, Transformation and Resilience Plan (PRTR) that are being invested in sustainable mobility in the Balearic Islands, from the creation of Low Emission Zones both of regional and municipal competition, to the digitalization of transport or the transformation of fleets.

He also mentioned Mitma’s direct investments, amounting to 21 million euros, which will be used to reduce emissions in state-owned ports in the archipelago, as well as to strengthen Cielo Unico’s ENAIRE programs to contribute to the reduction of CO2 emissions into the atmosphere thanks to the optimization of air routes.

Public transport

On the other hand, the minister has assured that the Agreement for the financing of the Palma Tram is well advanced. In his opinion, it is “a state-of-the-art infrastructure that will have a great relevance for the city and a great impact on sustainability, since it will allow to increase the modal share of public transport up to 60%”.

He has also highlighted his commitment to public transport, highlighting the 43 million for the Balearic Islands with the aim of covering 100% in the price of transport subscriptions and multi-travel titles of public transport.

In addition, regarding the public transport bonuses, he recalled the almost 825 million euros transferred for the resident transport bonuses since 2018 and that in 2023 the line has been increased by 5% more than in 2022 for these bonuses, with 272 million euros.

Affordable housing

Another of the issues addressed in the meeting was the need to promote measures in the Balearic Islands in the face of the tension in the rental real estate market. In her speech, the minister recalled that several lines of work are open to put on the market a very significant number of affordable rental homes.

In particular, he referred to the aid contemplated in the State Plan 2022-2025, through which almost 17 million euros have been allocated to the Balearic Islands in the last two years, the funds of the Recovery Plan to increase the public park for rent and the actions that SEPES, a public business entity dependent on the Ministry, has underway in the Balearic Islands, such as the construction of 1,066 houses for affordable rent, such as those to be built in Can Escandell in Ibiza and those of Son Busquets in Mallorca.

To these measures is added almost 10 million euros destined to the aid the Young Rental Bonus to facilitate access to a home for rent.

First Stone Act in Es Castell

In this context of commitment to facilitate access to decent housing, the minister has presided over the act of laying the first stone of the promotion of 35 public homes in energy-efficient buildings intended for affordable rent in the Menorcan municipality of Es Castell.

As the minister explained, these homes will be “a reality throughout the summer of 2024.” “We are moving forward in our endeavour to put solutions with concrete works that will reverse the tension of the rental market here in the Balearic Islands”, stressed the head of Mitma during the celebration of the event.

This housing promotion, located on the plot located on Calle Pintor Vives in the Urbanization of Santa Anna de Es Castell, will be carried out by the Balearic Government, through the Balearic Housing Institute (IBAVI) and has an estimated investment of 9.5 million euros, of which Mitma will contribute almost 1.3 million euros from European funds NextGenerationEU.

This promotion is carried out within the framework of the Recovery, Transformation and Resilience Plan (PRTR) which, as the minister said, “will act as a real lever to reverse the difficulties in access to housing and as an enhancer of economic activity.” This Plan “involves the transfer of just over 124 million euros” for the Balearic Islands with the commitment to rehabilitate 8,737 homes and their residential environments, as well as to build 492 social rental homes in energy-efficient buildings.

In particular, the promotion of housing in Es Castell is part of the agreements signed between the Ministry and the Autonomous Community of the Balearic Islands in November 2022, within the framework of the construction program of affordable rental housing of the PRTR, through which 24.6 million euros are allocated for 35 promotions that will add a total of 752 public homes for affordable rent located in 24 municipalities.

“The enjoyment of a decent home allows people to start a life project either personal, family or professional. Their lack is often the gateway to vulnerability, to the loss of other basic rights,” said Raquel Sánchez.