The UK Government, the Scottish Government and Dundee City Council agreed to extend the current public service obligation (PSO) contract until the end of 2016.
Loganair will continue to operate the route under the PSO, with 800,000 of funding supporting the six month extension. This will allow Loganair to operate two daily flights each weekday each way, and one on a Sunday. This will continue to boost Dundee businesses and visitors and will be timed to allow daytrips to be made to both destinations.
Scotland Office Minister Andrew Dunlop said:
I am pleased that we have been able to reach this agreement and create the chance for a longer term solution for this important connection for Dundee. The city - and Tayside - are on the up, with exciting new developments poised to bring jobs and opportunities to the area. I look forward to continuing to work with the Scottish Government and local authorities for the benefit of Scotland.
Scottish Governments Minister for Transport Derek Mackay said:
The extension of the Public Service Obligation on the Dundee-Stansted route is a welcome and important step for the future of the airport. All parties have worked together to reach an agreement that will see the route safeguarded in the immediate future, with a view to reaching a longer term solution in due course.
Following on from the recent announcement of a new service between Dundee and Amsterdam, this once again shows the impact of the Scottish Governments continued support for the airport. We will continue to work with all parties to maximise the opportunities at the airport and help it reach its full potential.
Ken Guild leader of Dundee City Council said:
I am pleased that the partners in this route have agreed that the backing for it will be extended. We will continue to work with them to encourage as many people as possible to use the service.
Dundee is a city undergoing a major positive change with UK and international businesses looking towards the city as a place to operate from, and flights to and from London have played an important role in that element of our long term regeneration.
A daily service to and from Stansted is well placed to serve the business as well as the leisure traveller.
Loganair chief executive Stewart Adams said:
We are pleased the service has been extended and will continue to offer our passengers in Dundee and the wider region a frequent and convenient link with London Stansted - one of the UKs leading international transport hubs.