HIAL today (Friday 1 April 2005) marks 10 years of ownership by the Scottish Ministers.

HIAL was formed as a private limited company in 1986 as a subsidiary of the Civil Aviation Authority. Ownership transferred to the Secretary of State for Scotland, now the Scottish Ministers, on 1 April 1995.

The company is responsible for the airports at Barra, Benbecula, Campbeltown, Inverness, Islay, Kirkwall, Stornoway, Sumburgh, Tiree and Wick. More than nine million passengers have travelled via the company’s airports in the past 10 years and the airports have handles more than 800,000 individual aircraft movements.

The scale of airport operations vary considerably within the region from Tiree which handles 5,600 passengers a year to Inverness, the region’s hub airport which has broken its previous passenger record and handled around 560,000 passengers in the past 12 months.

Over the past decade the Scottish Office and now the Scottish Executive have made a net investment of more than £100 million in the airports which play a vital role in the region’s transport infrastructure by supporting economic development, social inclusion and sustainable communities. This investment has facilitated the maintenance and upgrading of airport facilities and significant service enhancements that have improved the choice, frequency and reliability of flights.

HIAL is sponsored by the Scottish Executive through the Enterprise, Transport and Lifelong Learning Department’s Transport Group and receives subsidies from the Scottish Ministers in accordance with Section 34 of the Civil Aviation Act 1982.

Sandy Matheson, Chairman of HIAL, said: “Air travel is the only mode of transport which provides quick access to key regional centres within the Highlands and Islands and to the rest of Scotland, the UK and internationally for business, leisure and social welfare travel.

“Set against this background, HIAL has delivered significant benefits for the region and Scotland as a whole over the past decade, including new air routes and frequencies, improved airport infrastructure and enhanced services for both our airline customers and passengers.

“It is hard to imagine the region operating effectively without access to scheduled air services and I am pleased to say that this is a fact recognised over the years by the Scottish Office and now the Scottish Executive. The economic and social benefits that derive from air connectivity are enormous and HIAL will continue to work with airlines to develop existing and new connections in the years ahead.

“One of the most encouraging aspects of the company’s work is the constructive and wide support we receive from both our sponsor department in the Executive and our many stakeholders and partners in the public and private sectors in the region. Many of the significant developments in the past decade have been achieved through partnerships and this continues to be the case now with projects such as the Sumburgh runway extension and Inverness Airport Business Park.”

The airport operator is also preparing to publish its new corporate plan in May which will set out the strategic direction for the company in the years ahead.

Mr Matheson said: “HIAL has undergone many changes over the years to meet the air transport needs of the region. Our current Managing Director, Bob Macleod, has played a crucial role in this process and one of the major successes of his tenure has been the expansion of air services serving the region. As a result there are 35% more scheduled passengers using our airports now compared to 10 years ago. Bob will retire at the end of May after seven years at the helm and we are confident that his successor, Inglis Lyon, will prove equally dynamic and innovative in delivering outcomes that provide real benefits for the communities and businesses in the Highlands and Islands.

“Looking back at HIAL’s record I must also pay tribute to the company’s employees who show great professionalism and dedication in their work and play a fundamental role in their communities by ensuring air services can operate throughout the year.”

ENDS