Loganair is to offer half its seats on Shetland routes at four of its lowest ticket rates “to underpin its commitment” to the islands.
The move has been warmly welcomed by both veteran campaigners for reasonably priced air fares and Visit Scotland.
The commitment is part of a ten-point ‘Pledges for Shetland’ after the withdrawal of its rival Flybe on Monday, ending the so-called air wars price battle between the two.
The air carrier has also promised to increase the number of flights during the summer by 14% to 158 over the summer.
Steve Mathieson, VisitScotland Islands Manager, said: “With Flybe’s withdrawal from the island’s market, changes in prices were inevitable.
“Loganair’s 10 point pledge shows their desire to provide affordable and reliable services which will allow visitors from all over the world to travel to Shetland and experience its magic.”
Campaigner and local councillor Ryan Thomson also warmly welcomed the move saying it is a “welcome announcement”.
Mr Thomson said: “This is a lifeline service for Shetlanders and we want to see Loganair offer services which are beneficial and affordable.
“Without a shadow of a doubt the price wars were offering fares that were not sustainable but what Shetland wants is stability.
“That is exactly what we need now – no price fluctuations.”
Mr Thomson also praised Loganair management for listening saying that they were “very aware of the concerns of the public”.
Among Loganair’s pledges is a commitment to keep low fares of less than £60 one way to and from Aberdeen as well as adding flights to keep prices down based on demand at peak holiday times.
It will maintain the so-called rescue fare, introduced to get people home when Flybe cancelled flights, despite no longer having competition.
The company also vowed to do its “utmost” to fill any positions in the 40 strong work force at Sumburgh airport in Shetland locally.
The price war broke out between Flybe and Loganair when the franchise agreement in place since 2008 collapsed in July of last year.
Flybe left the deal to join with Eastern Airways to operate routes to and from the mainland and the Western Isles, Shetland, and elsewhere.