Highlands and Islands Airports (Hial) has confirmed it will not proceed with parts of an air traffic modernisation plan following a cut in its budget from Transport Scotland.
The move comes after a broader spending review by the Scottish Government in May and will see Hial “scale back” its project.
Hial previously tried to set up a “remote towers” project, which would have centralised air traffic operations to Inverness.
But union pressure scuppered the idea, meaning jobs were retained at on-site air traffic control towers.
The airport operator was due to develop an alternative arrangement but Scottish government budget cuts mean that has now been pared back.
Existing cooperation with National Air Traffic Services will continue.
Hial’s management team presented a paper to the board at a meeting on August 24 highlighting the impact of a “considerable gap” between the funding available and the company’s operational and strategic plans, including its air traffic modernisation proposals.
Difficult decisions based on extraordinary circumstances.”
Lorna Jack, chairwoman, Highlands and Islands Airports.
Hial chairwoman Lorna Jack said: “Our overriding focus is to deliver safe, reliable and sustainable aviation services for the communities we serve.
“Like many other businesses, Hial must reappraise priorities and spending options, and make difficult decisions based on the extraordinary circumstances we are all facing as global economic pressures impact our day-to-day activities and our future plans.
“The board is considering several options to help address the current fiscal position and decided one of them will be to scale back air traffic modernisation plans for the duration of the strategic spending review. This aligns with the five-year review agreed with the trade unions in January.
“The Hial board remains in dialogue with Transport Scotland regarding the reduction of funding and its effect on frontline service delivery.”
A Transport Scotland spokesperson said: “The UK is forecast to be heading into its worst recession in more than a decade, meaning families, businesses and governments face tough financial choices.
“The Scottish Government has a limited budget and it must, therefore, focus resources where they will make the biggest difference to people across Scotland.
“We remain committed to supporting Hial as it adapts its priorities, while still maintaining a safe and sustainable network of airports.”
Hial operates 11 airports, including Barra, Benbecula, Campbeltown, Dundee, Inverness, Islay, Kirkwall, Stornoway, Sumburgh, Tiree and Wick John O’Groats.
Conversation