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Regional airports get £56M funding boost

Regional airports and airlines are being encouraged to bid for grants from a new £56M cash pot to help launch new routes.

This ‘start up aid’ will be made available from the Regional Air Connectivity Fund which was announced by the government in June 2013 and is open to airports with fewer than give million passengers per year.

This fund has already been partly distributed to support strategic routes to London from Newquay and Dundee but is now being extended to bids for more routes.

The £56M is available to cover three years of financial support for start-up aid, with £17.5M being made available to bids in 2015/16 and around £20M a year for each of the remaining years.

Aviation Minister Robert Goodwill said: “Smaller airports are vital to local economies and ensuring they thrive is a key part of our long term economic plan.

“I want to encourage the industry to apply to expand their routes, to generate UK growth and jobs, as well as boosting our trade links with countries all over the world.”

Chief Secretary to the Treasury Danny Alexander said: “I created the Regional Air Connectivity Fund because, as a Highlander, I appreciate the immense value of regional air routes to people living in remote communities across the UK.

“This fund has already supported valuable services like Newquay’s London route, which has a return of 2.5 for every pound invested, making it great value for taxpayers too. I hope this further funding will help other areas sustain economically important connections too.”

To apply for the funding, airports and airlines will have to provide evidence to show their proposed route will generate local benefits and represents value for money. Guidance for airports on how to apply can be found here.

The initial application stage will run for five weeks, closing on Wednesday 25 February. Ministers will announce a shortlist of bids in March 2015. A list of successful bidders will then be published in June.  

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