The executive will cover the multi-million-pound annual running costs of City of Derry Airport for the next four years, the economy minister has announced.

Owned by Derry City and Strabane District Council (DCSDC), running the airport costs almost £3.5m each year which has historically been covered by ratepayers.

Economy Minister Caoimhe Archibald said her department has now assumed responsibility, and will provide up to £3m annually in a deal that runs until 2029.

She added, the department’s funding “will enable the airport to plan for future growth in the years ahead”.

“The airport is integral to the economic development of Northern Ireland’s north west,” Archibald said.

By assuming control of its running costs, she said, the council would now be able to focus funding on “supporting the north west’s ongoing competitiveness and ability to trade, attract inward investment and inbound tourism”.

Steve Frazer, the managing director of City of Derry Airport, said the four-year funding deal is “pivotal” for the airport’s future stability.

“This announcement ensures we are well placed to continue supporting the region’s ambitious growth plans and our continued contribution to the region’s economy,” he said.

The Mayor of Derry and Strabane Lilian Seenoi Barr said the council and airport can now “strategically plan” for the airport’s development and growth.

The airport “is a critical infrastructure asset that provides connectivity and is fundamental to business and tourism in the area”, she added.