Cornwall Council has decided to end the Public Service Obligation (PSO) subsidy for the air route between Cornwall’s Newquay Airport and London Gatwick Airport. The service, operated by Skybus, will cease by May 31. This follows a reduction in government funding from 66.7% to 50%, leaving the council unable to cover the remaining costs estimated at $19.1 million (£14 million) to $21.8 million (£16 million) over four years.
The council did not receive any alternative tenders that met PSO requirements, leading to the termination of the subsidy and putting both Skybus and Newquay Airport in a difficult position. Skybus operates this route using Universal Air’s Dash 8-Q400 aircraft.
Jonathan Hinkles, Managing Director of Skybus, stated on LinkedIn, “We have grave concerns about the impact of this decision on Cornwall’s essential connectivity, on continued employment in Cornwall’s aviation sector and most specifically for the viability of Cornwall Airport Newquay.”
Newquay Airport is located in Southwest England and offers limited connections mainly within the UK and Dublin, with a few routes to Spain. The loss of its link to London Gatwick could significantly affect airport revenue from landing fees, infrastructure use, passenger charges, and may also impact local employment and economic activity.
Hinkles indicated that continuing even a limited commercial service would not be viable without subsidies due to financial constraints faced by both Skybus and Newquay Airport.
Previously operated by Eastern Airways until late 2025 before its collapse, Skybus became the sole operator on this route using Universal Air’s De Havilland Dash 8-400 propeller aircraft configured for up to 78 passengers. Flights run daily but vary in timing throughout the week.
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