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Dundee City Council, Loganair Limited

  • The value of the subsidy is a maximum of £6,216,255 million. The purpose is to maintain a commercial air route between Dundee and London to achieve economic and social benefits.
  • Our key takeaways are:
    • When valuing your subsidy, ensure to check what cumulative subsidies might have already been given to the recipients. Here, the initial award in this case was not a subsidy of particular interest. However, the Council recognised the need to cumulate it with a similar subsidy to Loganair (which brought it within the mandatory referral threshold).
    • Provide details about the work done to verify whether the subsidy amount is the minimum needed to meet the specific policy objective and fully explain the evidence relied upon for proportionality.
    • Ensure the market failure and equity rationale is structured to align with Statutory Guidance.

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