An independent study has highlighted significant existing and potential economic benefits of no-frills air services to the Highlands and Islands.

The study was commissioned by Highlands and Islands Enterprise (HIE) and Highlands and Islands Airports Limited (HIAL) to help inform decisions about the development of air services to and from the region.

It shows that the only existing service, the easyJet flight between Inverness and London Luton, carries 112,000 passengers per year and for every trip made by local residents two are made by visitors to the Highlands and Islands.  This generates £12m in the region each year in visitor expenditure and supports more than 130 jobs, the majority of which are outside Inverness.

Half of the resident passengers interviewed as part of the research felt that the service has made the Highlands and Islands a better place to live, while 40% agreed that it  made them more likely to continue to live in the region.

Furthermore, the report highlighted the significant potential economic benefits for the area from low-cost no-frills services on other routes.  For example a link between Inverness and continental Europe would generate around £15m in visitor expenditure and support 340 additional jobs.

It also concluded that growth in the availability of no frills air services is likely to strengthen the labour market by making the region a more attractive place to live. This would help employers to retain and recruit the skills they require to meet their needs.

Tom Matthew, transport policy manager for HIE, said: "This research shows the significant impacts from the existing easyJet service to Luton.  Importantly, it demonstrates that the numbers of visitors using the service is much higher than the use by local residents.  Also, as with other services into Inverness airport, the benefits are felt well beyond the city itself.

"The potential of further no frills air services is also very encouraging and could help attract operators of new routes.  This includes not only the recently announced Inverness-Gatwick service but also routes to destinations outside the UK from airports in the Highlands and Islands. The recently established Route Development Fund will reduce airport charges for new routes from the region, as a means of encouraging more no frills services. It is one of the reasons why HIE has made a significant financial contribution to the Fund.

"At the end of the day decisions on individual routes lie with the operators but we are determined to ensure that the Highlands and Islands are always in their sights."

Alex Johnson, commercial and marketing manager of Highlands and Islands Airports Limited said: "HIAL and its partners, particularly the Scottish Executive and HIE, are very keen to introduce new routes from the region into Europe if commercially viable deals can be struck with airlines. The Route Development Fund will assist us in this work and this week has already seen the start of easyJet's Inverness - London Gatwick service that marks another development in a successful relationship between HIAL and Europe's leading no frills carrier. We will continue to work with our partners on cross border and European air links as a high priority."

Marketing manager for easyJet, Moira Findlay, said:  "easyJet's low cost services to Inverness from London Gatwick and London Luton will bring in large numbers of new tourists for whom a short break in the Highlands was neither practical or affordable. Our new Gatwick service opens up the Highlands to millions more people from the south east of England. A successful tourism strategy doesn't just depend on good direct air links - it depend on the low cost air links.

"For many small and medium size businesses in the Highlands the choice of low cost routes to London will also be a major benefit. Travel costs will no longer be an obstacle to picking up work that involves regular travel to London."