Flights from Wick Airport - Uncertainty over future funding of Wick Aberdeen Service
20th February 2024
The Highland Council is currently unable to confirm whether funding will be available to support the Wick-Aberdeen Public Service Obligation (PSO) after 31st March 2024.
The funding for the PSO is currently provided on the basis of £1.3m annually, with £1m committed by the Scottish Government and £0.3m committed by The Highland Council. The Council's portion of the funding remains committed but there is uncertainty around the position of Scottish Government.
The Scottish Government's funding commitment to the PSO was made by the then Cabinet Secretary, Michael Matheson MSP, in February 2021, with funding starting as of 2022/23 to coincide with the start of PSO air services and running for two years initially, with a further two years (to 2025/26) subject to passenger growth in the first two years.
Since June 2023, the Council has been liaising with Transport Scotland officials as indication was given at that time of uncertainty around the continuation of funding. Following a productive meeting between the Council, stakeholders, and Transport Scotland in August 2023, a case for continued funding was produced by the Council and delivered in early October 2023. As of 19th February 2024, no decision has yet been made by Scottish Government.
As of January 2024, in its second year of operation the service has carried 9,252 passengers as compared to 8,835 in the first year of operation, and is showing an average growth year-to-date of 25%. By 31st March 2024, it is expected that the service will have carried over 11,000 passengers.
Leader of the Highland Council, Councillor Raymond Bremner, said: ""I wrote to the Cabinet Secretary on 12 February given the urgent necessity of requiring a decision in respect of the Scottish Government's continued support for the PSO operating from Wick. A lot of work went into making sure that the Scottish Government and Transport Scotland had all the necessary information on which to make a positive decision.
"Since that information was submitted, Wick Airport has continued to see increased passenger numbers and, in this current year, is the top performing airport in respect of increased passenger numbers year-on-year in the HIAL portfolio of airports. In October and December of last year, passenger numbers had increased by 25% and 22% YTD respectively. The Highland Council has done everything it possibly can including its commitment to the continuation of funding which, at the beginning of the PSO was known to be £1.2m. I sincerely hope that the Cabinet Secretary endorses the commitment evidenced to date by so many."
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