The Stormont Executive has now taken over the annual running costs of City of Derry Airport for the next four years.
The airport is owned by Derry City and Strabane District Council.
Its annual running is around £3.5 million with ratepayers picking up the tab.
Economy Minister Caoimhe Archibald has announced her department has now assumed responsibility, and will provide up to £3m annually in a deal which runs until 2029.
The Sinn Fein minister added that her department’s funding “will enable the airport to plan for future growth in the years ahead”.
“The airport is integral to the economic development of Northern Ireland’s north west,” Archibald said.
By assuming control of its running costs, she said, the council would now be able to focus funding on “supporting the north west’s ongoing competitiveness and ability to trade, attract inward investment and inbound tourism”.
In January 2024, it was reported the airport was facing an estimated £729,000 shortfall, while three years previously the council warned it was facing “severe financial risk”.
Stormont has previously provided financial aid to the airport, including in October 2024 when the Department of Infrastructure said it was providing a £3m package for the Eglinton facility.
That same month, then Economy Minister Conor Murphy, said the department intended to assume responsibility for the running costs from April 2025.
CoDA managing director Steve Frazer said the four-year funding deal was “pivotal” for the airport’s future stability.
“This announcement ensures we are well placed to continue supporting the region’s ambitious growth plans and our continued contribution to the region’s economy,” he said.
Mayor of Derry City and Strabane District, Councillor Lilian Seenoi-Barr, said the council and airport can now “strategically plan” for the airport’s development and growth.
She added: “The airport is a critical infrastructure asset that provides connectivity and is fundamental to business and tourism in the area.”
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