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

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.