The Spanish airline Air Europa has to repay around 14 million euros in funding due to a court decision. The company was accused of fooling the regional governments into believing that ticket prices were higher on subsidized routes, but that the residents were charged a lower amount.

Among others, the Balearan, Ceuta and Melilla subsidize the mainland trips of their residents. On domestic Spanish flights, the resident number must be given when booking and the flight price will then be reduced. The difference is paid by the respective regional governments.

And that is exactly where the problem lies: The Spanish Supreme Court found that Air Europa charged residents a far lower price than the price given by the regional governments for paying out the difference. The carrier was accused of having fraudulently submitted false statements. The court shared the view and orders the repayment of 14 million euros.

Depending on the region, residents of islands or remote areas such as Ceuta and Melilla receive a grant of up to 50 percent on flights to mainland Spain. This is to ensure that, for example, appointments in the capital can be kept and travel expenses remain affordable. In the actual case, which the Spanish Supreme Court had to deal with, it ran from January 2009 to September 2010. The decision dragged on because the case in Spain went through all instances.