The air service Route Development Fund, launched by the First Minister Jack McConnell in November last year, is to receive a £300,000 contribution from Highlands and Islands Enterprise (HIE).

The Fund has been established to support reduced airport landing charges and speed up the introduction of new direct air routes between the ten airports operated by Highlands and Islands Airports Limited (HIAL) and destinations outside Scotland.  It will have total resources of £1.5 million, £1.2 million of which is being provided by Scottish Executive and £300,000 by HIE.  The Fund could also be used to support increased frequency on existing services from the region. It is hoped that the Fund will lead to both new services to England and to destinations in Europe.

Speaking after a meeting with Scottish Executive officials to take forward the project, HIE's transport policy manager, Tom Matthew, said:  "Developing air services is one of the main ways in which we can continue to support social and economic development in our region. The Route Development Fund will have a significant role to play in improving the range and frequency of our air services. This will serve to support not only business development and inbound tourism, but also opportunities for leisure trips by residents thus enhancing the area's attractiveness as a business location and a place to live.

"The Fund will act as a focus to raise awareness among air operators of the potential of the Highlands and Islands for establishing new air services.  From the airlines' perspective the start-up of a new service carries a perceived risk and the financial support available through the Fund will help overcome this.

"HIE's contribution to the Fund highlights the confidence we have in the potential for new services to be developed.  It also reflects our clear commitment to improving transport services in the region, and follows our recent significant funding towards introducing air services in Argyll, and our financial support for the recently-introduced Inverness-Manchester route."