Flights from City of Derry to London given more funding

A new deal to secure flights between City of Derry Airport and London Heathrow for another year has been announced.

Stormont's Department for the Economy and the UK government's Department of Transport have agreed a public service obligation (PSO) contract worth more than £2m.

A PSO sees government support routes which are not commercially viable.

Loganair will continue to operate the route from 1 April.

Stormont's Economy Minister Conor Murphy said the route "helps thousands of people to travel to work and conduct business".

"This investment also protects jobs for airport workers and their families," he said.

The airport, which is owned by Derry City and Strabane District Council, has been beset by long-term funding issues.

The City of Derry to London PSO route has been in place since 2017 and was the first of its kind in Northern Ireland.

The total funding for the route announced on Wednesday is just over £2m, with £1.018m provided by both Mr Murphy's department and the Department of Transport in London.

Managing director at City of Derry Airport, Steve Frazer, said the continuation of the route was key to the economic growth of the north west.

"With this core route now secured thanks to Minister Murphy's announcement today, improved regional connectivity will help drive our inward investment and growth opportunities across the north west," he said.

Mayor of Derry City and Strabane Patricia Logue also welcomed continuation of the route, saying connectivity with London is critical to the north west economy in terms of both business and leisure

The mayor said she hoped the renewed investment would help make the north west more appealing and accessible for international investors and help support local jobs.

The airport currently costs ratepayers £3.45m a year to help pay operational costs. That is around 5% of the council's total annual budget.

Last month it emerged the council is facing an estimated £729,000 shortfall in airport funding for the next financial year.

In 2021, the council submitted a business case to Stormont for £3m a year over a six-year period to help reduce the burden on ratepayers.

Last October, the council wrote to the Department for Infrastructure (DfI) requesting further funding to help meet the airport's annual running costs.

Speaking at the airport on Wednesday, Stormont's Infrastructure Minister John O'Dowd said he was committed to working alongside Mr Murphy "to listen to the case brought forward by Derry City and Strabane District Council".