No ‘single fix’ for long-term sustainability of air services, HIAL CEO says
THE CEO of Highlands and Islands Airports Ltd (HIAL) says there is “no single fix” when it comes to a long-term solution for protecting air services in the region.
Paul Kelsall also said he was unable to discuss the “nitty gritty” of negotiations which resulted in HIAL receiving more than £1 million from Transport Scotland to support flights connecting Inverness to Sumburgh, Kirkwall and Stornoway.
But he said the agreement involves a “solution that enables these flights to be restarted and reflects what is affordable within the funding that has been agreed”.
It was announced earlier this week that government agency Transport Scotland would be increasing HIAL’s resource grant for 2026/27 by up to £1.06 million for the restoration of a full Loganair service from Inverness to Sumburgh, Kirkwall and Stornoway.
HIAL is a government-owned company which runs 11 airports in the region, including Sumburgh Airport. It charges air operators fees for using its airports.
Its overall budget from the Scottish Government for 2026/27 is more than £52 million.
Loganair stopped flights between Inverness and the Northern and Western Isles last month during the week amid concerns over sustainability, with rising costs in areas like fuel and maintenance adding extra strain to the loss-making routes.
The airline previously said it could not sustain the full level of service without “government funded support”.
However following the funding commitment this week Loganair will reinstate weekday flights from 26 October.
Speaking on Friday, Kelsall told Shetland News that HIAL was “pleased a figure has been reached that means these flights will resume shortly”.
He said discussions with Loganair have been ongoing over several months to identify a solution to support the services.
The temporary reduction in service, however, prompted cross-party politicians into calling for a longer-term solution to keeping air services in the Highlands and Islands sustainable.
But Kelsall said there is no single fix, and it will need “continued collaboration between HIAL, Transport Scotland, the Scottish Government and airline partners to look at what sustainable connectivity looks like for the longer term”.
“We’re committed to being part of those conversations to ensure that the island communities we serve have a solution for years to come,” he said.
When asked if this likely to entail the need for more government funding in the future, Kelsall said: “Our priority was to resolve the immediate gap in service, and this agreement does that.
“Discussions on what comes next will continue, and we’re committed to working with our partners to find a solution that provides more certainty.”
It is understood Loganair would not have been able to reintroduce flights before late October because planes that would fly the routes have been reassigned to other services.
This means that local residents who had bookings for weekday flights between Sumburgh-Kirkwall-Inverness from late July to late October have had their journeys cancelled.
In a letter to Highlands and Islands MSP Kristopher Leask in June, Scottish transport secretary Stephen Flynn said he wanted to “see more delivered for the significant public spend” on air services.
He highlighted HIAL’s budget for 2026/27, and that the air discount scheme – offering cheaper flights for island residents – cost more than £14.2 million in 2025/26.
Flynn had reiterated that Loganair is a commercial operation and that the Scottish Government has “no direct power to intervene in their provision”, but he welcomed talks between the airline and HIAL.
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