| Although not commenting specifically on the move, the Executive has confirmed Holyrood officials are involved in talks with Dundee City Council “on the future arrangements regarding the operation of Dundee Airport”.
However, a spokesman for transport minister Tavish Scott’s department also stressed today that discussions are at “a very early stage”.
Based at Inverness Airport, HIAL owns the facility at the highland capital, together with nine other small airports.
Dundee City Council is hopeful the current dialogue could lead to HIAL spreading its wings outwith the Highlands and Islands.
Negotiations for such a development were given the unanimous backing of city councillors after they considered a report by senior officials.
Although it does receive a funding contribution from the Executive, the airport has been sucking in growing amounts of city council cash annually to finance its operations.
Rising running costs and the pressure on Dundee’s local authority budget have heightened the need for action.
The cost of running the largely under-utilised facility during the 2006/7 financial year has been put at £2.225 million. The Executive will contribute just over £800,000 to this, leaving the city council with a hefty bill.
It is not clear yet what implications the current discussions between city council and Executive might have on the funding and subsidy for the coming financial year.
Recent changes by the Executive in conditions relating to its Route Development Fund appear to have made a transfer deal involving HIAL a realistic prospect.
The removal of a requirement that supported services must operate at least five round trips a week in favour of a three round trips condition and the airport also now being allowed to use RDF cash to support domestic services, means Dundee may be a more attractive proposition for expansion under HIAL.
Lord Provost John Letford said at the weekend the city council was “fairly optimistic” a transfer deal can be struck, but also conceded that the level of subsidy the Executive could be expected to pay to the airport company towards the running of the Dundee facility was “crucial”.
Meanwhile, the SNP group on the council today raised the possibility of introducing direct flights between the city and Ireland as a possible expansion option.
The group’s economic development spokesman, Councillor Jim Barrie, said it was to be hoped any developments in the talks with the Executive would have beneficial effects on the future development of the airport and an increase in services.
“It is vital Dundee, as a regional centre, continues to have an airport which serves the public and business community,” he said. “As part of a larger provider being operated by HIAL, Dundee would benefit greatly.”
Mr Barrie said Inverness Airport had announced direct flights to and from Ireland. Dundee had a large community of students from both Northern Ireland and Eire who would welcome such a service locally, as would the tourism trade and business customers.
“We desperately need an injection of opportunity in Dundee and the surrounding areas of Angus and North Fife; the airport could be the much-needed gateway to this,” he added.
A city council spokesman said today that the authority was continuing to explore “various options” for the future of the airport.
Any discussions were confidential and as a result the council was unable to comment further at this stage. |
