GR Direct - Sony - Save up to £500
Sunday 27 July 2025
 16.3°C   W Moderate Breeze
Ocean Kinetics - The Engineering Experts

Transport / Reduced opening hours among range of scenarios being explored by HIAL as finances tighten

Sumburgh Airport. Photo: Ronnie Robertson

HIGHLANDS and Islands Airports Ltd (HIAL) is exploring a variety of different future scenarios – including reduced opening hours at airports – to enable the company to respond to financial challenges.

A spokesperson said that “like every organisation in the country, HIAL is reappraising priorities and spending plans based on the unprecedented external financial pressures we will continue to face”.

This has been highlighted in the publication of Scottish Government’s medium-term financial strategy, the HIAL spokesperson said.

It is understood the modelling of scenarios is more about reviewing or looking at all options for the future, given the current economic climate.

“The board is exploring different scenarios to ensure the organisation is well-placed to respond to challenging financial constraints while continuing to support essential air connections and lifeline services for the communities we serve now and into the future,” the spokesperson added.

At a meeting in February the HIAL board requested that a scenario based on reduced operating hours was included in the financial modelling.

HIAL is a company wholly owned by the Scottish Government. It is provided funding from the government in addition to the income it receives from its 11 airports.

But last year it confirmed that it was shelving its controversial remote air traffic control plans due to financial pressure.

The airport operator said in December last year that “indicative budgets show a decrease in the available funding for HIAL over the next three to four years, presenting a significant future funding challenge”.

It added: “The pressure this creates for the company is further compounded by increasing inflation and rising costs.”

In the year ended March 2022 HIAL received public subsidies totalling £76 million, split almost equally between capital and revenue.

Become a member of Shetland News

Shetland News is asking its readers to consider paying for membership to get additional perks:

  • Removal of third-party ads;
  • Bookmark posts to read later;
  • Exclusive curated weekly newsletter;
  • Hide membership messages;
  • Comments open for discussion.

If you appreciate what we do and feel strongly about impartial local journalism, then please become a member of Shetland News by either making a single payment, or setting up a monthly, quarterly or yearly subscription.

 

Sign up
for our Newsletters

Stay in the loop with newsletters tailored to your interests. Whether you're looking for daily updates, weekly highlights, or updates on jobs or property, you can choose exactly what you want to receive.

Advertisement 
Advertisement 
Advertisement 

JavaScript Required

We're sorry, but Shetland News isn't fully functional without JavaScript enabled.
Head over to the help page for instructions on how to enable JavaScript on your browser.

Interested in Notifications?

Get notifications from Shetland News for important and breaking news.
You can unsubscribe at any time.

Have you considered becoming a member of Shetland News?

  • Removal of third-party ads;
  • Bookmark posts to read later;
  • Exclusive curated weekly newsletter;
  • Hide membership messages;
  • Comments open for discussion.