HIAL reappraises its priorities in response to strategic spending review
Highlands and Islands Airports Limited (HIAL) has confirmed its intention to scale back its air traffic modernisation plans
In response to the funding challenges facing the country and the Scottish Government’s broader strategic spending review published on 31 May 2022, Highlands and Islands Airports Limited (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 24 August 2022 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 Chair 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.
“The Board is considering several options to help address the current fiscal position and decided one of the options will be to scale back air traffic modernisation plans for the duration of the strategic spending review. This aligns with the five-year review agreed with the trade unions in January this year.
“The HIAL Board remains in dialogue with Transport Scotland regarding the reduction of funding and its effect on frontline service delivery.”