Loganair (LM, Glasgow International) has signed a term sheet to order five Alia CX300 electric aircraft with options for five more from Beta Technologies, as it looks to renew its fleet serving economically challenging routes in Scotland.

The airline said that "the UK, and Scotland in particular, is a natural first market for commercial electric flight" due to the short flight distances, the need for smaller aircraft, and the lack of alternative means of transportation. Loganair conducted demonstration flights with an Alia CX300 earlier this year and expects to become Europe's first commercial airline operating electric aircraft.

"Our demonstration programme earlier this year proved that electric aviation is no longer a future concept, it is a viable commercial opportunity. The aircraft demonstrated the potential to reduce operating costs by up to 80% while maintaining the reliable regional connectivity our customers and communities depend on," chief executive Luke Farajallah said.

The Alia CX300 is designed as a conventional take-off and landing aircraft with a fully electric engine rechargeable in 20 to 40 minutes. It will carry up to five passengers, potentially replacing the carrier's BN-2s.

This comes as the airline continues to struggle with the economics of its Scottish regional operations. It announced frequency cuts to its Inverness-Stornoway and Inverness-Kirkwall-Sumburgh routes, describing them as "last resort" means. It has called on the Scottish and UK governments to "urgently" come up with a new financing model for the routes, which are currently not subsidised. Loganair receives local government assistance for services from Kirkwall to the outlying Orkney Islands, alongside contracts in other parts of Scotland. The airline suggested implementing a funding model resembling Norway, where airlines (predominantly Widerøe) receive subsidies for most services to remote communities.