City Of Derry Airport, the North's third-largest airport, is to receive a £7 million (€8.2 million) package of support from the Northern Ireland Executive to ensure that it remains a "key gateway to the northwest".
The financial lifeline comes just days after unions voiced concerns about the airport's immediate future after it became apparent that Ryanair, its key route carrier, plans to reduce its services from the airport next year.
Unite had warned that Ryanair’s decision to cease its six services a week to London Stansted, as well as summer Faro services, and to reduce its schedule of flights to Liverpool, had the “potential to cast a shadow over the airport’s future”.
But on Monday, the North's First and Deputy First Ministers confirmed that the Executive will step in with a multimillion-pound support package for the airport, which is owned by Derry City and Strabane District Council and is the only local airport under public ownership.
Route development
The Executive will provide up to £2.5 million in route development support and a further £4.5 million capital investment in partnership with the council.
First Minister Arlene Foster said the financial support package would allow the airport to plan for its future and remain a key part of the North's transport infrastructure.
Deputy First Minister Martin McGuinness said he believed connectivity was a prerequisite for economic development.
“With Ryanair’s withdrawal, having another airline in place is vital for our economic development and I am pleased discussions are at an advanced stage. I am confident this financial backing will enable the airport to not only function but flourish and serve all the people of the northwest and further afield,” he said.
The airport currently operates at a loss of more than £2.1 million a year.
