Subsidy Scheme for development of flight routes

Subsidy Scheme

I the 2019 budget for Vágar Airport an amount of DKK 2 Million has been allocated to – in cooperation with the aviation business – marketing of flight routes to and from the Faroe Islands.

The objective of the Subsidy Scheme is:

  • In cooperation with the business to promote marketing of flight routes to and from the Faroe Islands, as well as marketing the Faroe Islands as a travel destination.
  • To subside initiatives abroad where direct or indirect flight routes are listed, or where new markets or segments are introduced.
  • To subside initiatives that can develop flight routes and enhance interest in the Faroe Islands as a travel destination.
  • To subside initiatives that can develop the Faroe Islands as a business travel destination.
  • That subsidy will not be granted to cover the customary marketing of a business, i.e. customer visits, participation in exhibitions, manufacturing of websites, brochures etc.
  • To subside destinations and flight routes, which are regarded as key markets by Visit Faroe Islands. These markets primarily include the Nordic countries, Germany, Great Britain, the Netherlands and France. Furthermore, the United States are regarded a potential key market.

The marketing campaigns will be planned in accordance with the marketing plan of Visit Faroe Islands.

In conjunction with this, Vagar Floghavn has prepared the following guidelines regarding:

  • What the subsidy scheme covers
  • Who is eligble for applying for subsidies
  • Which conditions must be fulfilled

The application should be submitted to Vagar Floghavn together with a documented description of the project.

In general, the documentation must cover:

  • Objective (brief description)
  • Detailed description of the project to be enclosed with the application form
  • Information on the applicant
  • Information on cooperation partners
  • Information on the projectmanager
  • Timeplan
  • Detailed budget
  • Finance plan

Applications should be admitted to

Applicants are welcome to contact Vagar Airport by phone at +298 354400 for further information and guidelines.

Applications will be considered by a three party selection committee at Vágar Airport. In case it is considered necessary, the applications will be submitted to Visit Faroe Islands for evaluation.


The application must be submitted to Vagar Airport no later than the appointed deadline, i.e. 1st of May 2019. Applicants may apply before this deadline and expect an answer no later than 21 days after the application has been received. 

Who is eligible to apply?

The subsidy will only be granted to airlines that are working on improving routes to and from the Faroe Islands, and who wish to better their position on the foreign market as well as participating in the effort to promote the Faroe Islands as a travel destination.

‘airline’ should in this connection be understood as a legal entity, which operates on a commerical basis, and that amongst other things works to improve or promote flight routes to and from the Faroe islands including the Faroe Islands as a travel destination.

Joint Ventures

In the case of companies cooperating on a special project, this information should be included in the application. The company that wishes to be the flight company to fly or that intends to fly, which leads the joint venture, must apply for the subsidy, and this company will receive the payment.

Regarding project organisation etc.

The applicant must present detailed plans, which include all relevant aspects of the project, i.e. budget, time plan, activity plan etc.

Vagar Airport may require that applicatns prove that the airline has the necessary capacity to complete the project and furthermore, the financial capacity as well as a staff that possesses the required qualifications to ensure a performance in accordance with the plans. Vagar Airport may require:

  • That the project be divided
  • that specific preparations, i.e. market research, will be completed before the new projects commences, and
  • that the continuation of a project depend on the satisfactory outcome of the preceding project.

Subsidies will not be granted for the applicants internal costs of consultants and/or wages.

Maximum and minimum subsidy amount

  • The subsidy scheme is capped at DKK 700,000 per company. Vagar Airport may disregard the cap in case of large joint ventures.
  • Applications for subsidies amounting to less than DKK 50,000 will not be taken into consideration.

Grants and disclosure

Grants are based on information received from applicant or otherwise during the procedure being correct. If not, it may be expected that Vagar Airport will reclaim the granted amount from the applicant that has received the payment.

  • The subsidy is contingent on the applicants’ ability to comply with own plans regarding the project. In the event that significant changes occur, an application must be submitted to Vagar Airport immediately requesting an approval of the change.
  • Applicants are required to disclose whether they have applied for or received other subsidy schemes in regards to the projects and to which aspects of the project.
  • If the projects has not been completed by xx xxxx xxxx, the applicant is required to submit an interim statment on the status and progress of the project.  

Subsidy Payment

  • The granted amount will be paid as a one time amount, when Vagar Airport has received a financial statement regarding the project as well as a written statement and assessment of the projects. In conjunction with large time consuming projects, an agreement on current payments may be made.
  • Vagar Airport will decide whether financial statments are required together with the documentation on expenses.
  • The financial Statement should be made up in a way that enables a comparison with the budget enclosed with the application.
  • In case of expenses be included that were not part of the original budget, information thereon is required.
  • In case of a significant changes to the preconditions for the subsidy and on which Vagar Airport has not been informed or has approved of, Vagar Airport may refuse to pay the subsidy, unless these are changes that the applicant has no influence on.
  • In case the subsidy has been paid based on false pretences, or the pretences for the paid subsidiary have changed, Vagar Airport may demand repayment of the the amount.