Councillors voted for a commercial service to replace the subsidy
Flights between Newquay and London are to have a subsidy from Cornwall Council stopped, with a push for a commercial service instead.
The route to Gatwick is currently provided under a Passenger Service Obligation (PSO) contract jointly funded by the government and the council.
The government's contribution has been reduced and councillors said the service would need a taxpayer subsidy of between £14m and £16m over the next four years if it was to continue.
Business leaders have criticised the council's decision and said the county's transport network could not "absorb the loss", and the risks outweighed any savings.
Following the collapse of Eastern Airways in November 2025, a temporary deal was reached with Skybus to operate the route between Newquay and Gatwick until May.
On Friday, councillors were told the government's part of the subsidy had been cut from 66.7% to 50% and the tenders received had not been able to be "lawfully and affordably provided".
John Brown, chief executive of Cornwall Chamber of Commerce, told the Local Democracy Reporting Service Cornwall's transport network could not "absorb this loss".
He said: "We understand the financial pressures – two procurement exercises failed to attract compliant tenders, the Department for Transport has cut its contribution from 66.7% to 50% and aviation costs have risen sharply.
"But the chamber believes this decision carries risks that far outweigh the savings."
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