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Multi-million pound airport costs burden taken off ratepayers

BBC City Of Derry Airport BBC
City of Derry Airport is owned by Derry City and Strabane District Council

The executive will cover the multi-million-pound annual running costs of City of Derry Airport for the next four years, the economy minister has announced.

Owned by Derry City and Strabane District Council (DCSDC), running the airport costs almost £3.5m each year which has historically been covered by ratepayers.

Economy Minister Caoimhe Archibald said her department has now assumed responsibility and will provide up to £3m annually in a deal that runs until 2029.

She added, the department's funding "will enable the airport to plan for future growth in the years ahead".

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The minister said the airport is vital to the north west's growth

"It plays a vital part in the economic development of the entire north-west," Archibald said.

By assuming control of its running costs, she said, the council would now be able to focus funding on "supporting the north west's ongoing competitiveness and ability to trade, attract inward investment and inbound tourism".

How much does City of Derry Airport cost?

In January 2024, it was reported the airport was facing an estimated £729,000 shortfall, while three years previously the council warned it was facing "severe financial risk".

Stormont has previously provided financial aid to the airport, including in October 2024 when the Department of Infrastructure said it was providing a £3m package for the Eglinton facility.

That same month, then Economy Minister Conor Murphy, said the department intended to assume responsibility for the running costs from April 2025.

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Steve Frazer from the airport says the money allows for further development

Steve Frazer, the managing director of City of Derry Airport, said the four-year funding deal is "pivotal" for the airport's future stability.

"This announcement ensures we are well placed to continue supporting the region's ambitious growth plans and our continued contribution to the region's economy," he said.

The Mayor of Derry and Strabane Lilian Seenoi Barr said the council and airport can now "strategically plan" for the airport's development and growth.

The airport "is a critical infrastructure asset that provides connectivity and is fundamental to business and tourism in the area", she added.

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Scottish airline Loganair operates subsidised flights between Derry and London

Earlier this month it was announced direct flights between City of Derry Airport and London Heathrow will be subsidised by the Northern Ireland and UK governments for another two years.

Since 2017, flights between Derry and London have been subsidised under a public service obligation (PSO).