By Brian Smith, aviation reporter

Dundee MUST envy the financial muscle available to Highland and Islands Airports Limited and hope some comes its way if proposals for HIAL to take over running Dundee Airport come to fruition.

In their annual accounts to March 31, 2005, HIAL received subsidies of £21.43 million from the Executive —£17.3 million revenue support, the rest for capital projects.

Revenue from non-subsidised activities was £4,938,000 but operating loss before subsidy was £3,9777,000, including PFI charges of £1.871 million for new terminal buildings. Trading loss was £940,000. HIAL airports carried 564,776 passengers in 2004/05.

Executive support to a company it owns, well over £30 per passenger, contrasts sharply to the support for council-owned and operated Dundee Airport.

Late last year transport minister Tavish Scott said the Executive would allocate £804,000 in 2006-07 and £811,000 in 2007-08 to the city council to help with running costs, but the council has to find the £2 million-plus balance needed in both years.

If Dundee received revenue support at even half the level of Inverness, it would cover its annual running costs.

Any approach to the Executive for cash from the route development fund is to a body that owns a potential rival. Observers have noted that Dundee has campaigned for destinations such as Manchester, Birmingham and Dublin, yet all have been abandoned in favour of or have been inaugurated from Inverness by the airlines concerned.

They also ask what would happen if it is found there is a roughly equivalent market to a continental hub not yet served by either airport. Inverness has a runway suited to short-haul jets, while Dundee’s geography largely limits it to commuter airport status. Would HIAL give equal backing to both routes?

Whatever the reservations, HIAL may be the only realistic prospect of scheduled services continuing at Dundee.