Air Europa is to fly between Gran Canaria and the other Canary Islands as of October. It will compete with local airlines Binter and Canary Fly, as well as with the ferry companies Fred Olsen, Armas and Transmediterranea.

The move coincides with an increase in the subsidy for residents who fly between islands. It's going up from 50% to 75%. 

Air Europa plans to roll out its services in three phases: 

Phase one starts on October 30 and links Gran Canaria with Tenerife North, Fuerteventura and Lanzarote with seven daily return flights between Gran Canaria and Los Rodeos from Monday to Friday, five on Saturdays and six on Sundays. Between Gran Canaria and Fuerteventura, there will be three daily flights from Monday to Friday and two at the weekend. Gran Canaria will be linked by three daily flights.

In phase two, the frequencies of these routes will be increased and another will be added between Tenerife North and La Palma. 

Phase three starts in October 2018 with routes between Tenerife and the islands of Lanzarote, Fuerteventura and El Hierro.

The airline expects to generate 400 jobs in the Canary Islands.