A council has been threatened with legal action over its proposals to sell its own aviation fuel at Oban Airport.
Argyll and Bute Council owns and operates the airport which has regular scheduled flights to the islands of Coll, Colonsay, Tiree and Islay, operated by Hebridean Air.
Sightseeing flights are offered by Fly Scenic Scotland and flying lessons are available from Border Air.
The airport regularly welcomes private pilots and commercial charters from around the UK and Europe.
Currently fuel is sold there by private company TLC (Total Logistics Concepts).
The council has recently agreed a number of options as ways of boosting income at the airport, including selling aviation fuel to regular users and private flyers.
A proposal in its budget pack states: “TLC no longer has an exclusivity agreement in place with the council to sell fuel at the airport. However, TLC still has a lease for a fuel farm at Oban Airport which ends May 2020. The council would be able to offer continuity to supply fuel and receive all of the profit income from sales thereafter.”
A new post to administer fuel would have to be created and funded through the income, the council papers say.
However Paul Keegan, owner of TLC, said: “They can’t use public money to compete with a private enterprise. Under EU regulations, whilst there is a private operator willing to do it, it is illegal for them to use public money to compete with a private company. If they do this I will raise an action against them.”
A spokeswoman for the council said: “The airport is owned and operated by the council. We are always open to new business at the airport and are taking forward transformational proposals that have recently been approved unanimously by the council at their budget meeting.
“No decisions have been taken on how this will be operated. TLC still has a lease at the airport and this is unaffected. We are planning to maximize the economic potential of the airport to generate additional income to support the delivery of council services.”
Other proposals include building a hangar to lease out and reducing the Public Service Obligations (PSO) contract for flights to the islands.