Taxpayers are to continue helping prop up a flight route between Dundee and London City after a deal was approved behind closed doors.
Dundee City Council is committing more than half a million pounds towards helping keep the link running until October 2023.
The rest of the £2.5m support package will come from the Scottish and UK governments.
The money is needed despite a 21% rise in passenger numbers over the past three years.
What funding has been agreed?
Robin Presswood – the council’s executive director of city development – met with Willie Sawers, deputy leader of the council’s SNP administration, along with leaders of the opposition Labour, Lib Dem and Conservative groups.
They agreed to approve spending of £525,179 on the air travel subsidy.
The majority of that will come from an existing council budget with more than £200,000 coming from Covid-19 reserves.
Including the governments’ contributions the total funding comes to £2.462m – which is £100,000 less than last year.
Normally, major spending decisions are made at full committee meetings – but this was approved by the smaller group of councillors earlier this month because of the timescales involved.
Other elected members will be informed during a private meeting on Monday.
Why does the Dundee-London route need public funding?
The Dundee to London route has been the subject of a public service obligation (PSO) agreement since 2019.
This was introduced because the route is seen as important for the economy of the region, but passenger numbers are not large enough to ensure it can make money.
The operator receives public cash to plug the gap.
Although Loganair has reported a rise in passenger numbers, its costs are about £1.3m higher compared to the start of the contract – meaning it still needs public support to keep the planes in the air.
When the deal was first approved, the Scottish Government said passenger numbers would need to rise by 10% to ensure any Holyrood funding for the fourth and final year of the contract, up to October 2023.
A report seen by The Courier says numbers have risen by more than double that.
The flight operator also predicts that by late next year, passenger numbers will have grown by 60% since 2018-19.
Is there support for keeping the flight route?
There have previously been questions from some businesspeople and environmental groups about the need to spend public cash on maintaining the route.
It is understood that the Labour group also opposed certain aspects of the latest deal amid concerns over public funds, as well as criticism of the matter being discussed behind closed doors – away from the media and public.
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However, the council report says the link has “strong support” from business leaders, with Dundee and Angus Chamber of Commerce seeing it as a “key enhancement to business activity”.
In addition, a pre-pandemic assessment found that the route supports between 140 and 190 jobs and is seen as important for future developments like the Eden Project and the planned e-sports arena at the Waterfront.
Confirmation of the UK Government’s continued support for the route came in November last year.
What flights can you get at Dundee Airport?
Loganair’s service to London City consists of a twice daily weekday return flight and one return flight on a Sunday.
Passengers can also fly to Belfast City and Shetland through the same operator – though less frequently.
Earlier this week, Loganair also announced a new route between Orkney and London – which stops at Dundee on the way – from April 2023.
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