LOGANAIR is no longer in the running for the next inter-island air services contract, Shetland News understands.
The company, which runs flights in and out of Sumburgh Airport as well as the internal air service in Orkney, bid for the four-year Shetland Islands Council contract after it was put out to tender at the end of last year.
It is understood that a sticking point in Loganair’s bid was over who would pay for the costs of any potential work which may have needed to be done on the planes upon handover of the contract.
The contract will start on 1 April and it will only feature flights to Fair Isle and Foula.
Loganair previously ran the service for a number of years until Airtask Group took over the contract in 2006.
News on the successful bidder for the contract is expected in mid-February.
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