Date lodged: 7 February 2017
To ask the Scottish Government, further to the answer to question S5W-05743 by Roseanna Cunningham on 17 January 2017, for what reason the subsidy provided to Highlands and Islands Airports Limited (HIAL) increased by a greater margin between 2013-14 and 2014-15.
Answered by: Humza Yousaf 22 February 2017
HIAL receives both revenue and capital subsidy from the Scottish Government. In 2013-14 HIAL’s revenue subsidy was lower than trend as a proportion of the operating cost deficit was met from the use of cash reserves that HIAL had built up over a number of years. In 2014-15 the revenue subsidy reverted to trend. There was a significant increase in HIAL’s capital subsidy between 2013-14 and 2014-15. This primarily related to repairing the runway at Sumburgh Airport.