New System for Mobility Subsidy
The new law, published today in the Diário da República, introduces a unified legal framework for the social mobility subsidy. Previously, separate laws regulated the subsidy for the Azores and Madeira. Now, the government has decided to create a single, simplified system. The goal is to make the process more efficient and equal for both regions.
This subsidy aims to help passengers from the Azores and Madeira pay for their flights, ensuring they only pay a fixed maximum amount for tickets between the two islands and the mainland.
Despite the faster reimbursement process, with the creation of the platform, beneficiaries must purchase the ticket, paying the full amount, before having access to the subsidy.
Digital Platform for Subsidy Reimbursement
One of the key changes to the subsidy system is the creation of an online platform to manage the reimbursement process. The platform will allow passengers to submit their requests for subsidies and make the process more efficient and automated.
Once the platform is in place, passengers can request the subsidy after purchasing their tickets. They must submit the request through the platform before or after the flight. The amount will be paid after the purchase, but passengers are required to actually use the ticket. If not, they must return the subsidy.
This digital platform is set to be developed by the government, with a dedicated portal for managing beneficiaries and processing reimbursement requests.
Transition Period and Current Payment Process
Until the digital platform is operational, the current provider (CTT) will continue processing the subsidies. The rules for processing will stay the same, meaning that passengers will only be able to request reimbursement once they have completed their trip. A transitional period for the old system will remain in place until June 30, 2025, or until the new system is fully implemented.
Adjustments to Ticket Price Limits
Under the new model, the government plans to reduce the maximum ticket prices for residents in the Azores and Madeira. For Madeira, the current maximum fare is €86, with a subsidy limit of €400. This means that if the ticket price exceeds €400, you will be responsible for covering the difference. The new plan intends to lower these limits to €79, while student fares will drop from €65 to €59. The exact amount of the subsidy will be adjusted annually, with the government reviewing conditions such as price, demand, and supply.
New Eligibility Criteria and Subsidy Monitoring
The new system also introduces clearer and simplified eligibility criteria for the subsidy. The definition of “resident passenger” was updated to include all citizens, regardless of nationality, who have lived in one of the autonomous regions for at least six months.
To ensure fairness, the government is also introducing measures to prevent abuse of the subsidy system. The General Inspectorate of Finances (IGF) will be responsible for verifying the prices charged by airlines, checking if they match the public subsidies requested. Airlines will be required to notify the National Civil Aviation Authority (ANAC) and the Mobility and Transport Authority (AMT) of any changes to their ticket prices.
The new measures aim to ensure a transparent and efficient system, while helping residents in the Azores and Madeira manage their travel costs more effectively.
Source: RTP Madeira
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