Flights between Dundee airport and London Stansted have been secured for the next two years, with funding put in place by the government.
The route has been kept open after a public service obligation (PSO) was agreed between the UK Government and Dundee City Council. The deal guarantees £2.85 million to keep the service running.
Loganair will operate the service from July 1 with two daily flights each way.
The funding comes from the new Regional Air Connectivity fund, announced last year by the chief secretary to the treasury Danny Alexander.
UK Aviation Minister Robert Goodwill said: “This funding, the first of its kind, is good news for Dundee and its economy, whether it’s the world class research being carried out at the University of Dundee or the city’s financial services sector.”
Goodwill added: “Regional airports have a key role to play in our long term economic plan for the nation’s future prosperity, and the government is committed to ensuring they have access to London and vice versa.”
Alexander said the deal was important for Dundee as the city is a “key economic hub in Scotland’s thriving economy”.
“This will ensure that its key industries remain connected to rest of the UK. It’s good news for the people of Dundee and shows how we are better off together.”
The government also announced it aims to set up a second PSO agreement for the Newquay-London air link after the existing commercial carrier announced it would no longer operate the route from October 2014.
This week (June 2) research from the GTMC revealed the majority of regional business travellers want more direct long-haul flights and greater capacity from their local airports.
The research found four out of five respondents (84 per cent) called for more long-haul options out of regional airports, with 60 per cent saying these should be direct flights.