C.M.W.Maó02/08/10 0:00
TW
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The increase of the reduced IVA rate from 7% to 8%, which is applied to services such as transport, the hotel trade and new homes and which came into force on 1st July, has not yet been applied to inter-island flights. Such an increase would alter the public service status and would need governmental approval.

So far, the airline offering this service in the Balearic Islands, Air Nostrum, has absorbed the increase itself rather than pass it on to passengers but does not rule out an increase at a later date. Nor has the additional cost yet been applied to flights to mainland Spain.

At the moment it is anticipated that last winter's flights to the other islands and to the mainland will be maintained this year.