Government subsidies for flights between Dundee and London will cost more than £6 million over the next two years.
The money to fund the flights, which totals £6.2m, will come from Dundee City Council, the UK Government and the Scottish Government.
Last year, Dundee City Council contributed £525,000 towards the funding. However, the local authority did not say how much it is contributing this time.
The Dundee to London route is currently operated by Loganair. Earlier this year, its capital destination switched from London City Airport to Heathrow.
That was met with a mixed response from some – including The Apprentice star Mike Soutar.
Loganair’s service to Heathrow consists of a twice daily weekday return flight and one return flight on a Sunday.
Funding for Dundee to London flights
The Dundee to London route has been the subject of a public service obligation agreement since 2019.
This was introduced because the route is seen as important for the economy of the region. However passenger numbers are not large enough to ensure it can make money.
The operator receives public cash to plug the gap.
Dundee City Council has lodged a request with the government’s subsidy advice unit (SAU), which it states will go to Loganair.
The SAU will prepare a report which will consider whether the subsidy meets the subsidy control requirements. Its findings will be published next month.
Despite the request naming Loganair, a Dundee City Council spokesperson said it does not mean the contract has been awarded to the firm.
“The Dundee Airport to London air services public service obligation (PSO) is seeking to procure the services of an airline operator to provide a scheduled air service between Dundee Airport and a London airport.
“A request to the subsidy advice unit forms part of this process and does not indicate that a contract has been awarded at this time.
“The PSO contract currently operating from Dundee Airport has been financially supported by the UK and Scottish Governments, with assistance provided by Dundee City Council.”
‘Ongoing value’ of Dundee Airport
Highlands and Islands Airports Limited (HIAL), which runs Dundee Airport, reported a jump in passenger numbers..
Dundee Airport saw a 59.2% increase to 41,127 for 2022/23, up from 25,828 passengers the year before.
However in 2020/21, when the airport was severely impacted by Covid-19 restrictions, that figure was just 4,751.
The council spokesperson added: “We recognise the ongoing value of the airport to the local economy through the connectivity it provides for local businesses and people, and in supporting local jobs.
“The link to and from Heathrow will also increase international passenger numbers by connecting to BA’s global route network.
“A report on the latest PSO procedure will be considered by councillors before any decision is made.”
A Transport Scotland spokesperson said: “We continue to engage with Dundee City Council on their plans for the next PSO, and remain committed to working with the Council and HIAL to explore how the airport can best make a positive contribution to Dundee and the wider regional economy.”
Loganair said it would not comment. It said it is committed to providing the people of Dundee with a reliable and frequent air service to London.
A spokesman for the department of transport said it would not comment while the proposal is being considered by the SAU.
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