Norway’s government has revealed plans to double the financial support offered for the country’s public service obligation routes (PSO), enabling fares for passengers to be halved.

Proposals for the country’s 2024 national budget say that support for "Forpliktingar til offentleg tenesteyting" (FOT) routes will rise from NOK942 million ($87.1 million) to NOK1,935 million ($178.9 million).

“The FOT routes contribute to people being able to stay, work and live throughout Norway,” Transport Minister Jon-Ivar Nygård says. “With this move, we tie the country closer together, lower the costs of living in an elongated country and contribute to viable local communities.”

The move will enable the maximum fares on routes covered by the contracts to be halved from the start of the new agreement period from April 1, 2024.

Earlier this month, Norway’s Transport Ministry awarded Widerøe and DAT contracts for several PSO routes. Tenders for the routes were announced last April, and all carriers in European Union or European Economic Area member states were invited to submit bids to operate them.

Norwegian carrier Widerøe has been assigned the routes from Lakselv-Tromsø, Andøya-Bodø, Andøya-Tromsø, Harstad/Narvik-Bodø and Harstad/Narvik-Tromsø, while Danish operator DAT will operate three routes from Oslo to Florø, Røros and Stord.

Negotiations are still taking place between the ministry and one unnamed airline about several more subsidized regional air route contracts that were also put out to tender in April.