The First and deputy First Ministers have announced the Executive is providing a £7million rescue package to help the struggling City of Derry Airport.

Stormont has intervened with a rescue package after Ryanair announced it was cutting its London flights as well as reducing flights to Liverpool.

The troubled airport, owned by Derry City and Strabane District Council, is currently operating at a loss of over £2million a year.

The Northern Ireland Executive financial package includes £2.5m for route development and £4.5m capital investment aimed at creating high-value jobs and training opportunities.

First Minister Arlene Foster said: “This £7m package ensures the airport remains a key gateway to the North West for business and leisure travel.

“The Council also has plans for further development which would bring employment opportunities to the area and we want to act as a catalyst for it to succeed.

“This announcement is part of our plan to help deliver economic prosperity in every part of Northern Ireland. Indeed, the plans to invest in capital works will be a welcome boost to the construction sector in the North-West as well.

“Our package of support will ultimately allow the airport to plan for the future and remain a key part of the transport infrastructure for Northern Ireland.”

Deputy First Minister Martin McGuinness said: "Connectivity is a pre-requisite for economic development which made this £7million investment in the City of Derry Airport vital.

“This £7million package will enable the City of Derry Airport to invest in route development and capital projects which will create high value jobs and training opportunities.

“I have been actively engaged in discussions with the City of Derry Airport and the local council for a number of weeks.”

He added: “With Ryanair’s withdrawal, having another airline in place is vital for our economic development and I am pleased discussions are at an advanced stage.

“I am confident this financial backing will enable the airport to not only function but flourish and serve all the people of the North-West and further afield.”