The Minister’s approval now allows HIAL to finalise the deal with the owner Infrastructure Investors (I²), the parent company of Inverness Air Terminal Limited.

It is expected that the buy out will be completed within the next few weeks. The Executive will fund the deal through a grant to HIAL.

Mr Stephen said: “This deal will have a major impact on the economy right across the Highlands and Islands.

“Today’s announcement will allow Inverness airport to increase its competitiveness by attracting new airlines and new routes. The current contract has clearly been holding back the development of the airport and the economic potential of the whole area.

“Major changes have occurred in the aviation market since the PFI contract was signed in 1998.  As a result of the advent of low cost flights the costs of the contract have significantly increased. Every additional passenger made the current contract more expensive. This is why this buy out deal will be good value for money.”

Inglis Lyon, Managing Director of HIAL, said: “We are very grateful for the support of the Scottish Ministers and officials and we are now in a position to enter into the final phase of detailed discussion with the owner of the PFI, Infrastructure Investors (I²).

“The issues to be addressed include the agreement of the settlement price and associated due diligence.

“We will be meeting with I² and our respective legal and financial advisers at the earliest opportunity to address these matters and hope to achieve a resolution of the PFI in line with the expectations of our shareholder, the Scottish Ministers.”

ENDS