Transport Scotland recognises that the provision of air services in the Highlands and Islands is vital to the social and economic welfare of the areas they serve.
This provision of airport services through Highlands and Islands Airports Ltd (HIAL) contributes to the general objective of maintaining population and promoting sustainable economic growth in these areas but are loss making and are supported by subsidies from the Scottish Government.
HIAL is a public corporation, wholly owned by the Scottish Ministers. The company is responsible for the operation and management of 11 airports (Barra, Benbecula, Campbeltown, Inverness, Islay, Kirkwall, Stornoway, Sumburgh, Tiree and Wick) in the Highlands and Islands and Dundee. Deficit grant is paid to the company in respect of the losses incurred in its operation and this allows airport charges for domestic flights to be contained at a level which ensures the continuation of essential air services. .
HIAL’s Board of Directors is accountable to the Scottish Ministers. The Board operates under its Members Code of Conduct, which is derived from the Model Code produced by the Standards Commission of Scotland, together with recognition of other published corporate governance guidelines. The Board is responsible for the determination of the Company’s strategic plan and direction; security, safety and operational matters; commercial and route development; investment in the maintenance of HIAL's airports and in its wider estate; financial management; risk assessment and management; health and safety; and a range of important responsibilities including pay, pensions and employment issues. The Board is composed of six members. The non-executive Chairman, the executive Managing Director and four non-executive Directors are appointed to the Board by Scottish Ministers.
The Company also administers the Air Discount Scheme (ADS) on behalf of the Scottish Ministers. The aim of the ADS is to give remote communities in the Highlands and Islands the air services they need to support economic development, accessibility and social inclusion, at an affordable price for residents.
