A proposed new Ryanair hangar at Prestwick Airport will create 200 new jobs, cost £8 million and deliver significant investment to Scotland's economy, First Minister Alex Salmond said today.

The First Minister joined Ryanair Chief Executive Michael O'Leary at Prestwick Airport to announce the creation of a second maintenance, repair and overhaul facility at the airport.

The Scottish Government is supporting the project with the offer of £1.5 million in Regional Selective Assistance and training grants through Scottish Enterprise.

The new project builds on the airline's existing facility which opened in 2004. Over 400 engineering and support jobs will be sustained at the two facilities which will maintain Ryanair's fleet of more than 200 aircraft.

Ryanair also announced three new routes from Edinburgh to Faro, Marrakesh and Paris from May 2010 as well as increased frequencies on 16 other route from Edinburgh and Glasgow Prestwick this summer.

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First Minister Alex Salmond said: "The Scottish Government is doing all that it can to create jobs and investment in Scotland and this new Ryanair facility will deliver 200 new jobs to Ayrshire and invest £8 million into the Scottish economy.

"I am delighted that Ryanair is strengthening its operations in Scotland and this announcement shows that Ayrshire has the quality infrastructure and skilled workforce to secure this major project, having fought-off competition from a number of European locations.

"The Scottish Government is investing £1.5 million in this £8 million project, which demonstrates Ryanair's commitment to Ayrshire and builds on Prestwick's reputation as a centre for European excellence in maintenance, repair and overhaul projects."

The FM said Ryanair makes a substantial contribution to Scotland's economy through its engineering facilities and encouraging tourism and business traffic via its Glasgow Prestwick, Aberdeen and Edinburgh flights.

Ryanair Chief Executive Michael O'Leary said: "Ryanair wishes to thank First Minister Salmond, the Scottish Government, Scottish Enterprise and Prestwick Airport for their help and support in winning this new hangar and these 200 new jobs for Ayrshire and Scotland despite intense competition from five other European airports.

"Ryanair's new (second) maintenance hangar at Glasgow Prestwick Airport, will create 200 new engineering jobs, in addition to the 2,200 local jobs which have already been created and sustained in Ayrshire as a direct result of Ryanair's base and our existing hangar facility at Glasgow Prestwick.

"Ryanair's successful growth in Scotland is possible thanks to our on-going partnership with the Scottish Government and Scottish Enterprise, who have repeatedly supported our vision for many more low fare flights to/from Scotland."

(GK/BMcC)