The Courier & Advertiser (Perth and Perthshire Edition)

Flying high is vital for Dundee

- Graham Huband Business Matters Courier business editor twitter: @C–ghuband ghuband@thecourier.co.uk

Aday in which a second Scottish independen­ce referendum was called and Prime Minister May was handed the legal authority to trigger the UK’s exit from the European Union might be considered by some as the perfect opportunit­y to bury bad news.

But rather curiously it proved to be a day to bury good news, at least from Dundee Airport’s perspectiv­e.

At precisely 8.57pm on Monday the Department for Transport chose to announce that funding had been found to continue operation of Dundee’s only scheduled air route.

That’s certainly an odd time for such a move, but let’s not quibble. The £3.7 million public service obligation (PSO) funding package required to maintain Dundee’s air link to London Stansted for another two years has been secured.

Crucially, it means Dundee will have a direct outlet to the UK capital once the V&A Museum’s doors have swung open and a new wave of tourists want to come to the city.

It also means local business people still have the option of hopping on a flight and being in the heart of UK commerce less than two hours later.

The universiti­es and colleges have been regular users down the years, and there is also the golf crowd to cater for.

Where Dundee Airport has always struggled is in persuading the masses that flying from Riverside is a viable financial option compared to using one of the budget carriers flying out of Edinburgh and Glasgow. How valid is that? On March 27, the day after the new PSO comes into force, a day return with Loganair from Dundee to London Stansted will set you back £240.98.

Similar flights from Edinburgh with EasyJet are currently being offered at £55.98 return, while Ryanair can take you from Glasgow to the capital and back the same day for £58.18.

Even taking into account travel to and from the Central Belt, there are considerab­le savings to be made.

You can make the cost versus convenienc­e argument, but Dundee is still a very long way from operating on a level playing field.

Without the economies of scale that larger aircraft and more sophistica­ted logistical systems offer, there is no prospect of that gap narrowing.

The cash involved in keeping the Dundee flight in the air isn’t pocket change – the UK Government is putting up £1.85m, the Scottish Government is contributi­ng £1.4m and Dundee City Council is in for a further £400,000.

Some argue that channellin­g millions into a commercial­ly uncompetit­ive air route is daft given the cuts being made to lifeline public services elsewhere.

On paper it does seem silly, but I am glad to see the authoritie­s putting their hands in their pockets.

Dundee is Scotland’s fourth-largest city and is at the centre of a wider economic region of circa 450,000 people. That’s a population base similar in size to Cardiff.

It is inconceiva­ble that the Welsh capital would not be serviced by an airport, and it offers direct connection­s to more than 40 destinatio­ns in Europe and North America.

It should be just as inconceiva­ble for Dundee to be without an airport.

Ease of access and egress is vital in the modern world.

Through waterfront regenerati­on and the upcoming Tay Cities Deal, Dundee is emerging as a new economic power and it cannot afford to go backwards, not least in terms of its transport infrastruc­ture.

The renewal of the PSO is therefore welcome, but it should not be seen as anything more than a temporary springboar­d to a sustainabl­e future.

That’s where the airport needs to be.

Some argue channellin­g millions into a commercial­ly uncompetit­ive air route is daft ...butIam glad to see the authoritie­s putting their hands in their pockets

 ??  ?? Loganair will operate the route for the next two years
Loganair will operate the route for the next two years
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