Oban Airport plans take-off

The Oban Airport project forms part of the council’s Tax Incremental Financing (TIF) Pilot Project for the Lorn Arc Area, a scheme that allows the council to retain a portion of Non-Domestic Rates generated within a designated zone in order to fund investment in local infrastructure. 

This initiative is designed to deliver the infrastructure necessary for a fully accessible Oban Airport Business Park, while encouraging private sector investment and the creation of an aviation, engineering and logistics cluster. In doing so, the project also aims to help address population decline in Argyll and Bute and create more higher-paid employment opportunities for local residents.

Planning permission has been granted for one of two commercial buildings for lease at the site. The buildings are subject to a funding application for £7.68m from the Community Regeneration Partnership Fund. However, Councillors have also already agreed to invest £7.25 million to develop additional roads, infrastructure, and utilities at the site from the TIF fund with £1.6 million already approved for development costs to help meet the project timescales.

In addition, the development will also support development of a West Coast UAV Logistics and Training Hub project with an investment of up to £4 million from the UK Government as part of the Argyll and Bute Rural Growth Deal. This will enable the airport to become a leading research and development centre for UAV technologies, building on the success of recent pioneering trials using drone technology to provide essential services to some of Scotland’s most fragile rural and island communities. The investment will support proposals for Scotland’s first specialised drone training and research centre. It will also provide state-of-the-art hangars with maintenance facilities for UAVs and general aviation aircraft.

Elliot Robertson, Chief Executive Officer, Robertson Group, said: "Argyll and Bute Council’s vision for Oban Airport is a strong example of how innovative funding models like TIF can unlock critical infrastructure. By combining forward-thinking investment with high-quality construction, we’re not only enabling new business and research opportunities, but also laying the groundwork for sustainable economic growth in the region. It’s a project that shows how construction can help turn ambition into reality for rural communities."

Ian Phillips, Regional Managing Director, Robertson Construction Northern, said: "This project represents a significant investment in Oban’s future and an opportunity to deliver the infrastructure needed to support business growth, innovation, and employment. It builds on the ongoing collaboration between Robertson, Argyll and Bute Council, and hub North Scotland, and we look forward to helping bring these plans to life."

Council Leader, Councillor Jim Lynch, said: “I’m delighted to announce the appointment of hub North Scotland and Robertson Construction on this project. Both organisations have long history of successful community projects, and I am excited to see this innovative project progress and help put the area on the aviation map.” 

Richard Park, chief executive of hub North Scotland, said: “We have had an excellent long-term working relationship with Argyll and Bute Council and the Oban Airport development is a further demonstration of that commitment. This will be a transformational project which will create great opportunities for the airport and the local communities.”