Hovercraft sunk by lack of interest

The city council had teamed up with Fife Council to launch a "market-sounding exercise" whereby it asked companies to come forward with proposals for the service.

However, after receiving only limited contact from the private sector, the council has concluded there is "not a great deal of interest".

It also noted that operators would require a public subsidy of around 1 million a year, which it is unwilling to pay.

It was hoped a service could operate between Kirkcaldy and Portobello, although the council said that Burntisland, Granton and Leith would have also been considered.

A council spokesman said: "Having tested the market, it is clear that there isn't a great deal of interest in operating a cross-Forth passenger service, particularly during these economically challenging times.

"That said, should a commercial operator show interest in running a service in future, we would work closely with Fife Council to offer all reasonable non-financial assistance."

Scottish transport giant Stagecoach has already piloted a cross-Forth hovercraft service and previously confirmed that it was interested in providing the service.

But the Perth-based firm has always insisted that it needs "kick-start" funding from the public purse.

The firm recently confirmed it was pushing ahead with plans to develop landing points at Kirkcaldy and Portobello.

A Stagecoach spokesman said: "We are very much aware of the current challenging environment in terms of both the economy and public finances. We have been consistently supportive of both a ferry and a hovercraft as potential cross-Forth public transport solutions and still believe there is a future for a sustainable sea-based link in the long term.

"We are continuing to progress our planning applications with City of Edinburgh Council and Fife Council for landing and passenger facilities on both sides of the Forth in connection with a potential hovercraft link.

"After the planning process is completed, we would be in a position to reappraise the business case for a cross-Forth link. This would take account of the prevailing operational costs, the investment required for craft, re-evaluation of consumer demand, as well as the current and projected economic conditions and available public support for the project."

The idea is seen as a way of reducing congestion on the Forth Road Bridge, while helping reduce the environmental impact of Fife commuters travelling into Edinburgh.

In 2007 Stagecoach held a successful pilot of its hovercraft service, and it was used by around 32,000 passengers. It estimated that up to 870,000 passengers would use the service every year.

Last month Fife Council called a halt to its efforts to attract operators because of a lack of interest and funding.