Scottish Transport Minister warns Dundee Airport still faces major challenges even with £2.85 million PSO help
The Scottish Transport Minister has said that Dundee Airport still faces a challenge after the £2.85 million funding guaranteeing its future for 2 years was approved. Councillors agreed the public service obligation (PSO) between Westminster and Dundee City Council, which guarantees the money to keep the Dundee to London (Stansted) air route open. Scottish Transport Minister Keith Brown, while welcoming the deal, said it was only part of securing the long-term future of the airport. Dundee Airport can now start looking forward. The airport faces a challenge in the increasingly competitive aviation market and needs to continue looking at all the available options to encourage more passengers and businesses to use it. They might be able to drum up business from the offshore renewable energy sector. The PSO funding comes from the new Regional Air Connectivity fund and is the first funding of its kind.
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Transport Minister warns Dundee Airport still faces major challenges after funding boost
By ANDREW LIDDLE, (The Courier)
10 June 2014
The Scottish Transport Minister has said that Dundee Airport still faces a challenge after multi-million-pound funding guaranteeing its future for two years was approved.
Councillors agreed the public service obligation (PSO) between Westminster and Dundee City Council, which guarantees £2.85 million to keep the Dundee to London air route open for two years.
Transport Minister Keith Brown, while welcoming the deal, said it was only part of securing the long-term future of the airport.
He said: “The announcement of the PSO on the Dundee-Stansted route is a significant and welcome development for Dundee Airport.
“As we outlined in the Dundee Airport Scoping Study, published last December, securing the future of this crucial air link was one of our top priorities.
“Transport Scotland worked in partnership with Dundee City Council and Highlands and Islands Airports Limited to keep the route going in the short term and help the council build its PSO case.
“With the council agreeing the PSO last night, Dundee Airport can now start looking forward.
“It faces a challenge in the increasingly competitive aviation market and while this route will provide a platform for growth, it’s important we continue looking at all the available options to encourage more passengers and businesses to use it.
“The scoping study also highlighted a number of commercial opportunities — like engaging with companies in the offshore renewables sector — which could give Dundee Airport a unique place in Scotland’s aviation industry.
“These are areas that could be developed to attract new business.
“The establishment of the PSO is the first step for Dundee Airport, and the Scottish Government remains committed to working with Highlands and Islands Airport Limited, Dundee City Council and other stakeholders to secure its future,” he added.
SNP administration leader Ken Guild has hailed the deal as “great news for Dundee”.
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Earlier:
DfT signs first public service obligation to protect Dundee Airport to Stansted route
Air links between Dundee and London have been secured for the next 2 years with funding put in place today by the UK government. The public service obligation (PSO) agreed between the UK government and Dundee City Council guarantees £2.85 million to keep the route open, with flight times between the 2 airports at around 90 minutes. The funding comes from the new Regional Air Connectivity fund announced by Danny Alexander at Spending Round 13. This is the first funding of its kind. Robert Goodwill, UK Aviation Minister said: “Regional airports have a key role to play in our long term economic plan for the nation’s future prosperity, and the government is committed to ensuring they have access to London and vice versa.” The Regional Air Connectivity fund can be used to maintain important regional air connections, where they are in danger of being lost. The government doubled the size of the fund to £20 million per year in the 2014 Budget. The government aims to set up a second PSO agreement for the Newquay-London air link later this year, for business and tourism.
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