Regulatory Changes

Badajoz-Madrid and Badajoz-Barcelona Flights: The Regional Government Assumes Up to €7.15M Annually Until 2028

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Equipo Editorial CambiosLegales
18 Jul 2026 7 min 0 views

Key data

RegulationResolution of June 10, 2026, from the General Directorate of Civil Aviation — Amendment for extension and modification of the State-Regional Government of Extremadura Agreement for OSP routes Badajoz-Madrid and Badajoz-Barcelona
BOE PublicationJuly 17, 2026
Entry into forceJune 4, 2026
Agreement validityUntil December 31, 2028
Affected routesBadajoz-Madrid and Badajoz-Barcelona
Current airlineAir Nostrum (contract valid until October 27, 2026)
Previous maximum annual amount5.8 million euros
New maximum annual amount (2027-2028)7.15 million euros
Economic responsible partyRegional Government of Extremadura
CategoryRegulatory Changes — Civil Aviation / OSP
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The Air Nostrum contract to operate the public service obligation (OSP) air routes between Badajoz and Madrid, and between Badajoz and Barcelona, expires on October 27, 2026. To guarantee service continuity without interruption, the General Directorate of Civil Aviation has published the amendment extending the agreement between the State and the Regional Government of Extremadura until December 31, 2028, thus covering the period of the new tender and the resulting contract.

The regulatory reference is the Resolution of June 10, 2026 from the General Directorate of Civil Aviation (BOE-A-2026-15639), published on July 17, 2026 and effective from June 4, 2026.

€7.15M
Maximum annual contribution from the Regional Government of Extremadura for 2027 and 2028
€5.8M
Previous maximum annual amount under the extended agreement
+€1.35M
Annual increase assumed by the Regional Government of Extremadura
Oct 27, 2026
End date of current Air Nostrum contract

What does this regulation establish?

The Badajoz-Madrid and Badajoz-Barcelona routes are declared public service obligations (OSP): the State guarantees their operation even if they are not commercially profitable, because Extremadura lacks equivalent high-speed rail alternatives. To finance that guarantee, the State and the Regional Government of Extremadura share responsibilities through an agreement.

This amendment modifies two specific aspects of the current agreement:

  • Extension of validity: the agreement extends until December 31, 2028, covering the new tender process and the resulting contract.
  • Increase in maximum annual amount: the ceiling for the Regional Government of Extremadura's contribution rises from 5.8 million to 7.15 million euros for fiscal years 2027 and 2028, adjusting to updated actual operating costs.

The following table summarizes the specific changes introduced by the amendment:

ConceptBefore the amendmentAfter the amendment
Agreement validityUntil October 27, 2026 (end of Air Nostrum contract)Until December 31, 2028
Maximum annual amount (Regional Government of Extremadura)5.8 million euros7.15 million euros (fiscal years 2027 and 2028)
Coverage of new tenderNot contemplatedYes, included in the extended period

The Regional Government of Extremadura maintains full responsibility for all economic obligations arising from the contract with the selected airline, including possible non-payments or early contract terminations.

Economic and operational impact

The increase of 1.35 million euros annually compared to the previous ceiling represents an increase of 23.3% over the previous 5.8 million. This adjustment reflects the update of actual operating costs for the two routes, which include fuel, airport fees, and airline operating costs.

From an operational perspective, the most immediate impact is the new tender that must be called before October 27, 2026. Without this amendment, the economic coverage of the agreement would have expired with the Air Nostrum contract, leaving any adjudication process to a new airline without financial backing.

For the Regional Government of Extremadura, the maximum economic commitment for the 2027-2028 period amounts to 14.3 million euros (two fiscal years of 7.15 million each), which must be allocated in its budgets.

Who does it affect?

  • Regional Government of Extremadura: assumes the increase in spending ceiling (up to €7.15M/year) and total economic responsibility to the selected airline, including non-payments and early terminations.
  • State (General Directorate of Civil Aviation): coordinates the tender and publishes OSP conditions; shares agreement management but not the main economic burden.
  • Airlines bidding for the tender: any operator competing in the new tender for Badajoz-Madrid and Badajoz-Barcelona routes. Air Nostrum is the current operator until October 27, 2026.
  • Badajoz travelers: users of the routes who depend on this service to connect with Madrid and Barcelona, given the limited high-speed land transport offer in the region.
  • Badajoz Airport: the continuity of OSP service is decisive for the airport's operational volume.

Practical example

Imagine an airline that wins the new tender to operate the Badajoz-Madrid and Badajoz-Barcelona routes starting October 28, 2026. The estimated annual operating deficit amounts to 6.8 million euros (below the new ceiling of 7.15M€).

Under the extended agreement, the Regional Government of Extremadura would assume that entire 6.8 million euro deficit, within the maximum limit of 7.15 million. If during operations an early contract termination or non-payment occurred, the Regional Government would remain economically responsible to the airline, without the State assuming that burden directly.

With the previous ceiling of 5.8 million, that same 6.8 million deficit would have exceeded the agreement limit by 1 million euros, leaving part of the cost uncovered and putting service continuity or tender viability at risk.

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What should companies do now?

  1. Airlines interested in bidding: prepare technical and economic documentation to compete in the new tender for OSP routes Badajoz-Madrid and Badajoz-Barcelona before October 27, 2026. Review the conditions published by the General Directorate of Civil Aviation.
  2. Regional Government of Extremadura (budget management): allocate in the 2027 and 2028 budgets up to 7.15 million euros annually to cover the operating deficit of the routes, and provide for contingency items (non-payments, early terminations).
  3. Companies with frequent mobility Badajoz-Madrid or Badajoz-Barcelona: monitor the tender results to anticipate possible changes in frequencies, schedules, or operator from October 28, 2026 onwards.
  4. Airport operators and service providers in Badajoz: assess the impact of guaranteed continuity until 2028 on their contracts and resource planning.

Frequently asked questions

How much money does the Regional Government of Extremadura contribute for Badajoz flights?

With the amendment published on July 17, 2026, the Regional Government of Extremadura assumes a maximum amount of 7.15 million euros annually for fiscal years 2027 and 2028. Previously, the ceiling was 5.8 million euros annually, representing an increase of 1.35 million euros per year (23.3% more).

Until when is the Badajoz-Madrid and Badajoz-Barcelona flight service guaranteed?

The agreement extended by this amendment covers until December 31, 2028. The current Air Nostrum contract ends on October 27, 2026, so a new tender will be initiated to cover the period until 2028.

What happens when the Air Nostrum contract ends in October 2026?

When the Air Nostrum contract expires on October 27, 2026, the General Directorate of Civil Aviation must have already awarded the new tender to guarantee service continuity. This amendment provides the necessary economic coverage so that the tender process and new contract are financially backed by the Regional Government of Extremadura.

Who is responsible if the selected airline fails to fulfill the contract?

The Regional Government of Extremadura is responsible for all economic obligations arising from the contract with the selected airline, including possible non-payments or early contract terminations. The State does not assume that direct economic burden.

Why is the maximum agreement amount increased?

The increase from 5.8 to 7.15 million euros annually responds to the adjustment of the maximum deficit to updated actual operating costs of the Badajoz-Madrid and Badajoz-Barcelona routes. Factors such as fuel costs, airport fees, and operating costs have raised the estimated deficit above the previous ceiling.

Official source

View complete regulation at official source (BOE-A-2026-15639)

Notice: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-15639



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