A Scottish airports operator is to scale back air-traffic modernisation plans because of funding challenges.

Highlands and Islands Airports (HIAL) had already abandoned a previous proposal to centralise the service for some of its sites.

The BBC reports it had been working on a new modernisation plan, but said there was now not enough funding available.

The airports operator is discussing the situation with Transport Scotland.

HIAL said in a statement: "In response to the funding challenges facing the country and the Scottish Government's broader strategic spending review published on May 31, HIAL has confirmed its intention to scale back its air-traffic modernisation plans.

"HIAL's management team presented a paper to the board at its meeting on August 24 highlighting the impact of the considerable gap between the funding available and the company's operational and strategic plans, including its air-traffic modernisation proposals."

HIAL is a private limited company wholly owned by the Scottish Ministers, and receives subsidies from the Scottish Government.

Overriding focus

Chairwoman Lorna Jack said: "Our overriding focus is to deliver safe, reliable and sustainable aviation services for the communities we serve.

"Like many other businesses, HIAL must reappraise priorities and spending options and make difficult decisions based on the extraordinary circumstances we are all facing as global economic pressures impact our day-to-day activities and our future plans."

HIAL runs 11 airports across Highland, Argyll, the Western Isles and Northern Isles, as well as Dundee Airport.

In January, the company dropped its plan to centralise some of its air-traffic control operations.

Controllers at Dundee, Inverness, Kirkwall, Stornoway and Sumburgh were to be relocated to a new hub.

The Prospect union opposed the move, saying it would have put almost 50 jobs at risk.

HIAL said the plan no longer formed part of its proposed modernisation of air-traffic control.

Review of separate plan

A separate plan to downgrade air traffic services for Benbecula and Wick John O'Groats airports was also to be reviewed.

Just last week, the Scottish Government said public-sector pay demands, help for displaced Ukrainians and rising inflation had put "enormous strain" on the country's budget.

Deputy First Minister John Swinney told MSPs that around £500million in cuts had been identified to ease the pressure.

He said a lack of borrowing and an inability to vary Income Tax rates outside the normal budgetary timetable had left him with "no other choice".

The cuts included a reduction of £53million in the budget for employability schemes and £37million less for concessionary fares.


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