2 days Ago By BBC
Direct flights between City of Derry Airport and London Heathrow will be subsidised by the Northern Ireland and UK governments for two years, Stormont's Department for the Economy has confirmed. Since 2017, flights between Derry and London have been subsidised under a public service obligation (PSO). The existing PSO expired at the end of March.
On Wednesday, Northern Ireland's economy minister Dr Caoimhe Archibald said joint government funding of £4.626m secures the route until 2027. "This route plays a vital role in providing the north west with connectivity to other parts of Europe and the rest of the world through the PSO route to London Heathrow," Archibald said.
The minister added that the Derry airport acts as "as a catalyst for the local and regional economy by providing enhanced air connectivity and tourism benefits", adding it also contributes to economic growth in the north west region. PSO air routes see the government support flights which would not be commercially viable without state support. The City of Derry to London PSO route, operated by Loganair, is the first of its kind in Northern Ireland.
Meanwhile, Archibald's department also confirmed it has prepared a business case to provide Derry City and Strabane District Council with funding to cover the airport's running costs for the next four years. The airport is owned by the council and it costs ratepayers more than £3m to help pay operational costs. In October 2024, then economy minister Conor Murphy said his department intended to assume responsibility for multi-million-pound annual running costs.
Now a department spokesman said: "A business case to provide funding to Derry City and Strabane District Council from 1 April 2025 to 31 March 2029 has been prepared by DfE and is now going through the relevant approval process." The council has previously raised concerns over future funding ..
