Loganair Ltd. to continue operation of lifeline Inter-Island Air Service

Loganair Ltd. has been awarded the contract to operate Orkney’s inter-island air service for the next four years from April 2025, following a competitive tendering process.  

The Public Service Obligation (PSO) Contract awarded by Orkney Islands Council, provides lifeline connectivity to the islands of North Ronaldsay, Papa Westray, Sanday, Stronsay, Westray and Eday, as these services cannot be delivered on a commercial basis. 

The contract has been awarded initially on the existing level of service provision, until the outcome of a request for additional external funding from Scottish Government is known.  If successful, an enhanced level of service provision could be taken forward during the Contract period.  

Loganair Ltd. Inaugurated Orkney’s inter-island air service using Britten-Norman Islander Aircraft in September 1967 and has continuously provided these vital links to island communities ever since.  

Previous studies and consultation with communities and NHS Orkney have flagged the need for additional frequency and capacity within the service which cannot be extended using existing resources.  

Initial discussions have taken place regarding the potential need for an additional aircraft, which will be further explored as the contract progresses. This addition would enhance both flight frequency and network resilience. 

In 2023/24 the service carried 21,995 passengers, an increase of 1,730 (8.5%) from 20,265 in the previous year.  

Councillor Mellissa Thomson is Vice-Chair of the Development and Infrastructure Committee and represents the North Isles ward.  She said: “Our inter isles air service is vital to our isles’ communities – whether that be by providing quick and easy access to mainland Orkney and beyond for local folk, bringing itinerant teachers out to our isles’ schools, bringing youngsters into Papdale Halls or offering an alternative to the ferry for our visitors.  

“We’ve been served loyally by Loganair over many years, and I’m pleased that once again we’ve been able to award the contract to them. 

Luke Farajallah, Chief Executive Officer, Loganair said: “The inter-island services between Kirkwall and the neighbouring islands are vital for the communities and individuals who rely on air transport to travel safely and conveniently for personal and professional reasons.  

“We’re very pleased that we are continuing to play a part in the provision of these services and that the communities we serve can look forward to remaining connected together using our friendly and reliable services in the years ahead. 

“Loganair’s ability to provide these lifeline services is entirely due to the experience and hard work of our dedicated team in Kirkwall who, for almost 60 years, have been there as an embedded part of the community they live in and serve.  

“2025 is going to be a very special year for Orkney and the surrounding island communities, and we never take for granted the trust that is placed in us to serve in this wonderful part of Scotland. This announcement allows us to look forward to further developing our relationship with the communities in Orkney and the Islands, providing reliable, sustainable and affordable air travel for at least the next 4 years through the award of this contract. 

An additional funding ‘ask’ of £1m for an enhanced air service has been presented to Scottish Government as part of the Ferry Taskforce discussions with the view to help address the accessibility issues and provide additional frequency for Outer North Isles residents. 

The contract will run from 1 April 2025 to 31 March 2029.