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This is an ongoing story that has been in the news the last couple of days.

TAP seem happy to only charge residents the discounted rate for a flight connecting Madeira and the mainland. This rate is capped at 86 euros for adults and 65 euros for students. From what I understand is that the customer will only pay the capped price and then TAP will get the rest of the cist back from the government. Prices can be as high as 200, 300 even 500 euros so it’s a lot to pay out for Madeirans and then wait for the refund.

Now Easyjet have threatened to pull this route as they want the full amount paid in advance, and the customer then claims the money back.

This was the article in the Jornal Madeira yesterday.

Article | 11/01/2017 17:51
It is with satisfaction that the president of the Regional Government looks for the solution of the TAP, advanced today by the JM, but remembers that for the situation to be settled it is necessary that the Central Government ‘moves’.
Our headline reports that TAP management is available to receive only part of the residents’ tickets, contrary to what has been happening so far. Miguel Albuquerque reminds us that for the solution to be a reality it is necessary “that the Central Government resolve the matter and that the left majority will move the process that is in the Assembly of the Republic.”
As for JM’s headline today, the chief executive said that this was already a solution expected a year ago. “This was to be resolved within six months after the bill was passed,” he added, arguing that families can not continue to face the unbearable values ​​of air travel.
“We get the ceilings of the air tickets, where the resident pays 86 euros and the student pays 65 euros, but on the other hand we have this problem of, at peak times, parents have to advance 400, 500 and even 600 euros” , he said, repeating criticisms of the Central Government, which he attributes responsibility for the current situation.

This is a copy from RTPM website about easyjet.

If you change the model of air subsidy currently in force, and only have to pay the carrier 86 euros, easyJet airline guarantees to leave the Funchal-Lisbon route.

This was one of the statements that the head of the company advanced to Antena 1, saying that this is considered a practice of the past and that, for example, makes easyJet not to fly to the Canary Islands.

More problems for the regional executive who has been trying for months to try to change the subsidy model. All because the complaints are related to the amount paid in advance, sometimes too high, by the Madeirans.