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<p>The Government expects that the majority of domestic routes will be commercially
viable, as many are today, with support from Heathrow Airport. This support includes
discounted charges for domestic passengers at Heathrow, and a £10 million Route Connectivity
Fund for domestic services to and from Heathrow.</p><p> </p><p>The Government will
also take action, where appropriate, to secure routes through the use of Public Service
Obligations (PSOs). PSOs provide the opportunity to offer exclusive rights to airlines
to operate a route. The Government currently provides subsidies for three PSO routes
to London: Newquay to Gatwick; Londonderry to Stansted; and Dundee to Stansted.</p><p>
</p><p>The Government’s approach to domestic connectivity will be set out in a Green
Paper on the Aviation Strategy towards the end of this year, and the extent to which
subsidies may be required can only be determined subject to market conditions nearer
to the time at which new capacity becomes operational.</p>
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