HIAL is in ongoing discussion with Noble Group regarding the future of the PFI contract for Inverness Airport terminal. We have received widespread support for this work from our stakeholders, including the Scottish Executive, and are confident that a mutually agreeable solution will be reached.

The commercial aviation industry has changed dramatically since the original PFI deal was signed in February 1998 with airports now having to actively compete to attract airlines. However, at the time there was a pressing need for a new terminal building at Inverness and entering into a PFI contract was the only option available.

We now believe that the per passenger charge paid for use of the terminal at Inverness is burdensome in the current aviation climate and restricting the growth of the North of Scotland’s largest air hub.

We believe that a restructuring of the deal leading to greater control of the terminal and access to associated revenue streams would assist us in our ongoing work to attract new air services to Inverness and increase passenger numbers.

We are currently evaluating a series of options to resolve the situation regarding costs associated with the PFI contract and officials will present these to the Minister for Transport shortly.

The detail of these options and the ongoing negotiations are commercially confidential and we are not in a position to disclose further information at this time.

ENDS