Chief executive of Highlands and Islands Enterprise Iain Robertson said: "It is disappointing that Sea Containers have chosen to withdraw from the Campbeltown to Ballycastle route, as this service has provided an important economic boost for the economy of the Kintyre peninsula and the wider Argyll and the Islands area.

"In the three years since the service started it has brought some 80,000 people into Kintyre as ferry passengers, demonstrating its importance to the area.

"Today's announcement is a set-back, but an opportunity remains, the terminal infrastructure is in place at Campbeltown and Ballycastle and the 'Claymore' is available for charter. We, along with AIE, the local authority and our other partners in the area will look closely at any proposals to establish a new service. I would also like to pay tribute to the efforts of Scotland Office Minister Brian Wilson to broker a solution to the ferry issue this year."

Chief executive of AIE Ken Abernethy said: "In the longer-term we are convinced this service has a viable and secure future, providing a quick and direct link between two communities who have much in common, both in terms of tourism and business traffic. Obviously the marketing of the link has been hampered by the slow pace of the peace process in Northern Ireland, when that is resolved we can anticipate a surge in demand for the ferry service."