The Scottish Government will not reinstate the Air Discount Scheme for island businesses due to its cost.
The decision was confirmed by islands and transport minister Humza Yousaf in a letter written on Wednesday.
In his letter, Yousaf said the government decided against granting flight discounts to businesses again due to affordability.
Highlands and Islands Transport Partnership (HITRANS) in conjunction with island councils called on the government last year to reinstate the discount after removing it in April 2011.
Shetland Islands Council’s transport manager Michael Craigie told told Thursday’s ZetTrans meeting in Lerwick that he felt a “credible case” was made for giving businesses discounted fights again.
Councillor Davie Sandison said it was a “short-sighted approach” which would be “extremely detrimental” to businesses in Shetland.
Vice-chairman Robbie McGregor, an SNP member, echoed those views and said the issue should be raised again with the government.
Yousaf said the case for reinstating ADS for business travel was “robust” and demonstrated its potential benefits.
But he said the government simply does not have the budget at the moment to make a U-turn.
“As I am sure you are all aware, this remains a time of financial constraint within the wider public sector finances,” he said.
“Given the projected cost of extending the scheme as well as the anticipated continued trend for existing scheme costs to continue to increase, unfortunately, as I outlined at the recent ITF, we do not currently have the financial resources to extend the scheme.
“Should the public finance situation change then we may revisit the issue, but for the forseeable future this proposal is unafforable.”
The ADS scheme was introduced in 2006 by the then transport minister Tavish Scott, offering islanders a 40 per cent discount on air fares, not including tax.
The discount level for private travel was increased to 50 per cent last year.
Business related travel is considered to be any journey where there is a business component, regardless of whether there is also a leisure-related aspect.
