Flight company threatens pull-out

Tayside Aviation provides flying training to hundreds of people a year

The operators of a flight training centre in Dundee have threatened to pull out of the city over rising rents, high fuel costs and parking issues.

Tayside Aviation has been operating in Dundee for more than 40 years and employs 50 people.

However, managers of the firm, based at Dundee Airport, have said they could move to Glenrothes or abroad.

The operators of the airport said they had offered substantial support and services to the firm.

Dundee Airport is managed by Highlands and Islands Airport Ltd (HIAL).

The managing director of Tayside Aviation, Jim Watt, has accused them of profiteering by putting a 20% surcharge on fuel.

Mr Watt claimed he paid an extra £100,000 in fuel last year because of HIAL's high prices and he now has to fly his aircraft to Fife to re-fuel because it is cheaper.

He also said that his rent was due to double from September and then there would be an incremental increase over the next 10 years.

He is also concerned about the installation of new parking barriers - although passengers are not yet having to pay to park.

Mr Watt believes Dundee will lose out if he has to move the business.

HIAL's support to Tayside Aviation far exceeds what would normally be offered and demonstrates that the allegations of profiteering are unfounded HIAL spokesman

"We have some 200 students a year who eat, sleep and live in Dundee for the period of time they're here for training," he said.

"We have a hotel that's full every day of the week with our students. There are students who rent properties because some of them are here for up to two years.

"It's all these economic benefits into Dundee, which is a significant amount."

A HIAL spokesman said: "HIAL has provided fire and air traffic cover outside scheduled flight times to enable Tayside Aviation to operate its business and does not recover the considerable costs of these services."

He added that HIAL offered Tayside Aviation funding to develop its own fuel selling facility.

"Despite accepting this proposal in early December 2008, Tayside Aviation has not moved the issue forward. A fuel discount was also introduced for Tayside Aviation," he said.

"The firm's rent is currently 13% of the market average and HIAL has proposed incremental increases over 10 years to achieve a market rate which Tayside Aviation agreed was acceptable.

"HIAL's support to Tayside Aviation far exceeds what would normally be offered and demonstrates that the allegations of profiteering are unfounded."