THE Scottish Government is to provide an additional £10 million to a struggling airport that it bought last year for £1.
Glasgow Prestwick Airport will be loaned the cash as part of the Finance Secretary John Swinney’s budget plans for next year.
The Scottish Government took the airport into public ownership last year after owners Infratil had earmarked it for closure.
Deputy First Minister Nicola Sturgeon announced a £7 million investment for repairs and improvements at Holyrood in June - but warned MSPs that it could be a long time before they see a return on the investment.
A Government spokesman confirmed that it was “investing in Glasgow Prestwick Airport to ensure that it can continue to meet all of its current financial obligations”.
He stated: “Our investment will take the form of loan funding, which will attract a market rate of interest in line with state aid rules and we expect this investment to generate a long-term return for taxpayers’ money.
“As was clearly stated at the start of this process, Scottish Government investment in Glasgow Prestwick Airport is being undertaken on a commercial basis and will help ensure the continuation of robust competition between airports in Scotland and will not be at the expense of it.”
The spokesman added: “We are clear that any investment in Glasgow Prestwick Airport will have no impact on the Team Scotland approach and our on-going efforts to support all Scottish airports’ route development aspirations.
“We are confident there is a place for Glasgow Prestwick Airport in the evolving and increasingly competitive Scottish aviation market, and are committed to making it the success we know it can be.”