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Fly direct between Auld Reekie and New York

11/06/2004

The Executive's Route Development Fund has helped to secure the non-stop, daily service between Edinburgh and New York/ Newark airport. This is the first time that the Fund has invested in a transatlantic route.

Scotland's thriving financial services and tourism businesses will benefit from the launch of a new direct air route today between Edinburgh and New York according to Transport Minister Nicol Stephen.

The new service will complement the already successful service between Glasgow and New York.

Nicol Stephen said:

"The USA remains the powerhouse of the global economy and better connections will give Scotland a competitive advantage.

"This new, non-stop service will help Scottish companies prosper in a crucial market and encourage more direct investment from US businesses in Scotland. It means business people and visitors are now able to fly direct, without taking a second flight through a hub airport outside Scotland.

"Edinburgh is now one of Europe's largest financial centres and this new route connects Scotland's capital directly to the world's financial capital. Scotland's leading banks are now major players in North America and another link to Wall Street can only strengthen our global businesses.

"The service also offers a fantastic opportunity for our tourism industry. There is huge interest in Scotland across North America and with improved promotion as part of this new route the potential is very significant. Newark/ New York is a hub airport for North America and we are now in a position to attract many more US visitors."

The value of Scottish exports to the USA in 2002 was £2 billion, making it Scotland's second largest export market after Germany.

The US already provides the greatest amount of direct investment into Scotland, with more than 350 projects last year, and US banks have invested more than £500 million in financial services in Edinburgh in the last 5 years. The financial services sector accounts for 80 per cent of all business travel between Edinburgh and New York.

Mary McLaughlin, Director of Transport at Scottish Enterprise, which manages the Route Development Fund on behalf of the Scottish Executive, said:

"The start of Continental Airline's new transatlantic air service between Edinburgh and New York is another important landmark in the development of direct air routes to and from Scotland. For the first time both of Scotland's main cities are now linked directly, all year round, to New York and a hub which offers access to a further 170 destinations across the Americas.

"The Edinburgh service will help reinforce the very strong business and leisure links between Scotland and North America and build on the success of Continental's service which has operated between Glasgow and New York for the last six years.

Provisional figures for 2003 show that there were 415,000 US visitors to Scotland, a 7.5 per cent increase from the previous year.

Philip Riddle, Chief Executive of VisitScotland said:

"We're delighted to welcome this first direct service between the New York area and Edinburgh, and look forward to working with and supporting Continental Airlines in future, to ensure this venture is a huge success.

"The American market remains hugely important to Scotland's tourism industry, and the launch of this service is testament to our country's standing as a world class visitor destination for US leisure and business travellers alike."

The Route Development Fund is provided through the 2002 Scottish Budget with £5.5 million from the Executive, £1 million from Scottish Enterprise and £300,000 from Highlands and Islands Enterprise. The fund is operated in partnership with Scottish Enterprise, who administers the fund on the Executive's behalf.

The Route Development Fund supports new air links where airlines can demonstrate the services will have a direct economic benefit to Scotland. The flights must involve regularly scheduled services and must not undermine existing flights. 20 offers of support have been made to date. The exact amount from the fund given to the airline cannot be disclosed due to reasons of commercial confidentiality. This is the first time a transatlantic route has been supported.

Page updated: Saturday, July 17, 2004