Highlands and Islands Air Services
Highlands & Islands Airports Ltd.
Highlands and Islands Airports Ltd. (HIAL) is a nationalised industry, wholly owned by the Scottish Ministers. The Company operates and manages 11 airports at Barra, Benbecula, Campbeltown, Dundee, Inverness, Islay, Kirkwall, Stornoway, Sumburgh, Tiree and Wick.
HIAL's airports are vital to the social and economic welfare of the areas they serve but are loss making and are supported by subsidies from the Scottish Executive.
Issues considered by the HIAL Board include commercial development, financial management, security, safety and operational issues and regional priorities. The Company also administers the Air Discount Scheme (ADS) on behalf of the Scottish Ministers. The aim of the ADS is to give remote communities in the Highlands and Islands the air services they need to support economic development, accessibility and social inclusion, at an affordable price for residents.
Lifeline Air Services
Highlands and Islands Air Services (Scotland) Act 1980 makes subsidies available to meet deficits incurred in providing socially necessary, "lifeline" air services in the Highlands and Islands. Currently, Loganair Ltd. receives subsidy to link Tiree and Barra with the Mainland (Glasgow); and also Campbeltown with Glasgow. The subsidy ensurew that these isolated communities have air links with the Mainland. Without subsidy, air services to these communities would be uneconomical.
Loganair will fly from Campbeltown, Tiree and Barra to Glasgow International having successfully tendered for the contract. This contract runs from 1 January 2007 until 31 March 2009, see the associated news article.
More information about the European Union's Air Transport Liberalisation package.