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”.