The return of a beloved helicopter service between Penzance and the Isles of Scilly has come a step closer thanks to EU funding worth almost £2m.

After half a century of service, the last regular flight between the Cornish town and Scilly took place seven years ago. The operator blamed the stoppage on rising costs, falling passenger numbers and a land dispute over its the heliport site.

It was a loss to visitors, who loved the 15-minute trip, but it was even more serious for islanders, who relied on the helicopter for quick getaways to the mainland, including for medical emergencies.

Many have reported a slump in tourism, especially in the winter months when the passenger ship stops sailing and fixed-wing planes can be grounded by poor weather.

On Thursday Penzance Heliport Ltd said preparation work had begun on building a new base for the aircraft, backed by £1.8m from the European Regional Development Fund (ERDF). The new heliport is just 200 metres from the previous site.

ERDF funding has previously supported other Isles of Scilly infrastructure projects including airport redevelopment at Land’s End and quay upgrades on the islands.

The remainder of the £4.3m project costs will be from private investment, with the Tresco Estate and the Dorrien-Smith family, who live on and manage the island of Tresco, the largest investors. Flights operating all year are expected to restart in the spring of 2020.

Robert Dorrien-Smith, of Penzance Heliport Ltd, said: “This European funding, alongside the record support from islanders, visitors, businesses and agencies on the islands and further afield, shows the importance of Penzance heliport to the future growth of the Isles of Scilly.”

Cornwall council’s cabinet portfolio member for transport, Geoff Brown, said: “I welcome this news which will enhance passenger choice in travelling to and from the Isles of Scilly and improve resilience on the route.”

Most tourists reach the Isles of Scilly by boat, usually arriving in Hugh Town harbour, on the island of St Mary’s. Photograph: Alamy

The chairman of the Isles of Scilly council, Robert Francis, said: “Excellent transport infrastructure is vital to the social and economic future of our islands. Today’s announcement will further strengthen our island transport links for a thriving island community.”

This is not the first time a company has tried to reintroduce a helicopter service between Cornwall and Scilly. Last year a rival company, the Isles of Scilly Steamship Group, began flights between Land’s End and Scilly.

The move was controversial with some islanders, who saw it as a spoiling tactic by the steamship group, which operates the passenger ferry, freight boat and fixed-wing plane service. The group denies this.

The ferry company’s helicopter service does not operate all year, with flights due to restart in April after the winter break.

Flights from Penzance heliport will operate to St Mary’s and Tresco using an AW139 helicopter.