Press Statement
Shetland Islands Council Press Statement – 20 January 2012
Court of Session ruling - Sumburgh Airport
In recent press coverage regarding the ongoing maintenance issues at Sumburgh Airport runway, Shetland Island Council has been unable to respond until now to the comments made by Inglis Lyon, the Managing Director of Highland and Islands Airports Limited (HIAL).When asked to comment, it was pointed out that this matter was before the Courts and a decision was awaited.
We are pleased to announce that the Court of Session in Edinburgh has today ruled in favour of Shetland Islands Council and decided that the previous adjudication decision was unenforceable as it had arisen from a breach of natural justice.
The Council was the designer of the runway and is confident that at all times fulfilled its obligations to HIAL. When the runway was being procured, budget limitations meant that HIAL had to accept a higher ongoing maintenance obligation for the runway rather than a much higher initial capital expenditure. In more recent times HIAL has refused to accept that this compromise had been reached.
The Council is satisfied with the outcome of these proceedings and remains willing to provide whatever assistance it can to HIAL. Contrary to the earlier reports, Shetland Islands Council engaged with HIAL at length and we had earlier worked very well together in the design, procurement and construction of the runway.
The Council hopes that an amicable resolution to this situation can be reached, with HIAL, as it cannot be in the public interest for it to continue.