Loganair is exploring new routes from Dundee Airport, but the airline’s chief, Luke Farajallah, emphasizes that expanding services is contingent upon more support and reductions in air passenger tax.
Farajallah highlighted the “very popular” Dundee to London route, which has been a strong performer for the airline. He noted that ongoing discussions aim to introduce additional destinations from the city’s publicly owned airport. However, he cautioned that rising operational costs—such as increased employer National Insurance contributions and air passenger duty (APD)—pose significant challenges.
“Our aim is to keep tickets affordable for customers, encouraging more people to fly from Dundee,” Farajallah stated. He believes that when factoring in additional costs like baggage fees and travel to larger airports in Glasgow and Edinburgh, Loganair’s ticket prices offer a competitive alternative to budget airlines like EasyJet and Ryanair.
Farajallah, who joined Loganair last year after stints with major airlines like Wizzair and British Airways, has overseen a period of growth, with the airline serving approximately 2 million passengers annually. The Dundee to Heathrow route, supported by a Public Service Obligation (PSO) established in November 2023, is crucial for connecting the city to the capital and stimulating local tourism and economic growth.
In a recent interview, Farajallah discussed the potential for new routes from Dundee Airport and emphasized the need for governmental support. “We’re in ongoing discussions with local authorities and MP Chris Law, a strong advocate for the Dundee to London route,” he explained. “As long as we have the understanding that we need support to keep these routes sustainable, Loganair is committed to maintaining our presence here.”
However, he expressed concern about the financial barriers posed by taxation. “When the Chancellor adds APD to every ticket sold, it creates prohibitive factors that discourage travel,” he noted. He urged government ministers to consider lowering the tax burden on airlines to create a more balanced market, stating that even small increases in taxes can accumulate and deter passengers.
In addition to APD, changes to National Insurance thresholds are expected to impact Loganair’s bottom line by an estimated £500,000 starting in April. “These cumulative costs make it increasingly difficult to expand and open new routes,” Farajallah remarked.
Despite these challenges, Loganair is focused on rebuilding confidence in its operational performance and providing reliable services. “We want to be a dependable choice for travelers, and that requires significant investment,” he added.
When it comes to pricing, Farajallah emphasized Loganair’s commitment to transparency. Flights between Dundee and London range from £75 to over £210, with most fares falling between £110 and £160. “What you see on our website is what you pay,” he assured. “There are no hidden fees, and our ticket prices include baggage, onboard service, and other amenities that low-cost carriers often charge extra for.”
He pointed out that while there is an inherent cost to flying from a regional airport like Dundee, passengers should consider the additional travel expenses they incur when flying from larger airports. “We want to encourage people to fly from Dundee, and we strive to keep our fares as competitive as possible,” he concluded.
Loganair remains committed to expanding its offerings and making air travel accessible to the Dundee community, despite the challenges posed by rising operational costs.
