Saaremaa, Hiiumaa cite law of supply and demand in calls for cheaper air fares

News Kadri Põlendik {{1772190960000 | amCalendar}} {{contentCtrl.likes}} share Facebook X (Twitter) e-mail NyxAir’s ATR 42-500 turboprop regional airliner at Kuressaare Airport in Saaremaa. Source: Mait Ots/ERR News Saaremaa, Hiiumaa cite law of supply and demand in calls for cheaper air fares Estonia’s two largest islands, Saaremaa and Hiiumaa want cheaper flights to Tallinn, citing falling demand. The decline in passenger numbers is currently not a sufficient argument for lowering prices, said Regional Affairs Minister Hendrik Johannes Terras (Eesti 200).

Hendrik Johannes Terras (Eesti 200), Source: Ken Mürk/ERR The mayors of both islands see it that the ticket price rise has reduced passenger numbers so significantly that fares should be brought back to the 2024 levels. This would mean that a round-trip ticket to Tallinn would cost €60 to/from Kuressaare (Saaremaa, current price €72) and €56 to/from Kärdla (Hiiumaa, currently €68). Hiiumaa mayor Hergo Tasuja (SDE) told ERR: “In January 2024 there were nearly 900 passengers on the Kärdla–Tallinn route, and in January of this year there were 632 — a fairly substantial drop following the price increases.

And if we take into account that, according to the procurement conditions, ticket revenue goes to the state, then I truly don’t understand how this mathematics has not been grasped — that lowering the ticket price and thereby increasing aircraft occupancy would not reduce state revenues.” Hergo Tasuja (SDE). Source: Personal collection. “We will see how the share of passengers recovers; if in the long term it really remains like this, then it can be discussed again.

But changes in public transport always involve a long time lag, and that must be taken into account,” Terras explained. The minister also pointed out that the state already heavily subsidizes travel between the islands to keep it affordable.”The state pays roughly €120 per air passenger, of which €36 is the passenger’s own contribution — meaning the stat

Topics: #saaremaa #hiiumaa #demand