The future of a Tay Cities Deal project costing more than £8 million is in doubt following the collapse of Dundee flight school Tayside Aviation.
The business, based at Dundee Airport, has operated in the city for more than half a century.
Cash flow problems sent Tayside Aviation into administration on Thursday, with the immediate loss of 22 jobs.
Aviation Academy for Scotland
Tayside Aviation was recognised as one of Scotland’s best flight schools, training hundreds of RAF air cadets and commercial pilots.
It was also a key element of one of the Tay Cities Deal projects – the creation of an Aviation Academy for Scotland.
This project, led by Perth College UHI, looks to develop a skilled workforce of aircraft engineers, air traffic controllers and new pilots.
Costing £8.1m, it was to see an investment in infrastructure to integrate local, regional and national aviation education and training.
The majority of this spend would take place at Perth College UHI and at its subsidiary Air Service Training (Engineering) Ltd.
A sum – understood to be around £2m – was allocated for the Dundee campus of the Aviation Academy for Scotland run by Tayside Aviation.
The Dundee operation was to focus on pilot and air traffic management training.
Impact on Tay Cities Deal project
The full business case approval of the project – one of 26 in the Tay Cities Deal – is due to take place in September this year.
Perth College UHI principal Dr Margaret Cook said it was too early to assess the impact of the Tayside Aviation collapse.
She said: “We are very sorry to see that our partners in the Tay Cities Deal to develop the Aviation Academy for Scotland have gone into administration.
“It is our hope, of course, that they re-emerge from that process and continue to operate from Dundee Airport.
“It is too early for us to give a view on how this will impact on the project.
“We continue to be committed to investing in the infrastructure to provide local, regional, and national aviation education and training.”
John Alexander on Tay Cities Deal funding
Dundee city council leader John Alexander, who is a member on the Tay Cities Regional Joint Committee, said: “It’s incredibly disappointing to hear the news of Tayside Aviation’s move into administration.
“It’s had a long history in Dundee and it has trained many pilots, worldwide. In fact, it’s been one of the most successful training schools in the UK.
“Of course, such decisions are never taken lightly and my hope is a buyer can be found and jobs can be saved.
“There’s also funding allocated within the Tay Cities Deal that will need to be reviewed should the worst outcome come to pass.
“I’ve asked officers to engage with the company and support the workforce in any way we can whilst the administrators carry out their work.”
Meanwhile the RAF is “reviewing available options” for the future of its air cadet pilot scheme.
Dozens of students studying at Tayside Aviation have also been left in limbo.
The founder of Balhousie Care Group, Tony Banks, acquired Tayside Aviation in December 2021.
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