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Hial hails a record year for its 11 airports

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New routes and extra flights on existing services have helped Highlands and Islands Airports (Hial) to a record year, bosses said yesterday.

Reporting a “top flight” performance during the 12 months to March 31, Hial said its 11 airports were used by 4.7% more passengers.

A total of 1.4million people flew in or out of Barra, Benbecula, Campbeltown, Dundee, Inverness, Islay, Kirkwall, Stornoway, Sumburgh, Tiree and Wick John O’Groats, the publicly-owned company added.

Hial’s latest annual report also revealed operating losses of £442,000, compared with a trading deficit of £3.8million the previous year.

The business tends to run up losses in order to sustain lifeline services to some of Scotland’s remotest communities.

Hial said the improved performance in 2014/15 was due to Scottish Government subsidies returning to “normal levels” of £20.1million. This was compared with £14.9million the year before, when the operator drew from its own cash reserves.

Managing director Inglis Lyon said: “The UK air travel industry is enjoying a period of sustained growth and the signs of this success are evident across regional Scotland.

“2014/15 ranks as our best ever year, with a record number of passengers using our airports, continued expansion at major gateways such as Inverness and Sumburgh and new airline partnerships that make it easier than ever to see the world from our airports.”

Mr Lyon also highlighted Hial’s role as an “ambassador” for the aviation industry in Scotland, pointing to representations to the Airports Commission in support of a third runway at London Heathrow.

And hailing a year if highs for Hial, chairman Grenville Johnson said: “With the economy recovering, confidence in the industry is reviving and demand for air travel is increasing.

“We have worked hard to ensure that our airports are equipped to meet this demand. Our route network expanded, with new services at Dundee, Inverness and Sumburgh, and links to many existing destinations were strengthened with more frequent flights and bigger aircraft on a number of routes.”

Inverness was the busiest airport in the group in 2014/15, with 657,661 passengers – up 6% on the previous year – pushing numbers at the Highland terminal to a six year high.

Sumburgh was another strong performer, with an 8% increase in passenger numbers during the financial year.

The best performing airport was Barra, which saw a 14% increase as it proved increasingly popular with visitors eager to experience the exhilarating beach landing.

Hial said it invested £12.4million in capital projects aimed at improving operational efficiency and facilities.

This included funding for two new Twin Otter aircraft, commissioned by the Scottish Government from Canadian manufacturer Viking Air and now operating on the public sector obligation routes from Glasgow to Barra, Campbeltown and Tiree.