United Airlines bailout: MLAs told £9m rescue package 'irregular'

United Airlines was given a three-year deal in August to prevent it axing its daily service between Belfast and New York

A £9m rescue package to save United Airlines from ending its daily Belfast-New York air route has been described as "irregular".

MLAs on the Public Accounts Committee (PAC) were told the deal got rushed Executive approval in the face of concern about value for money.

United got a three-year deal in August to prevent it axing its Newark to Belfast International Airport flight.

It is the only regular direct link between Northern Ireland and the US.

Alliance MLA Trevor Lunn described the aid package as "outrageous."

"This is madness. United will be laughing all the way to the bank," he said.

Economy Minister Simon Hamilton said in August the route was crucial to US-inward investment

Mr Lunn added the deal was given "without proper scrutiny."

Fresh details were provided by the NI Auditor General, Kieran Donnelly, when he appeared in front of the Public Accounts Committee on Wednesday.

Mr Donnelly said there was no precedent for the bail-out which could now be scrutinised by Europe under state-aid rules.

United Airlines - which recently received its first payment - will not permit any monitoring of the financial assistance of $4m (£3m) a year.

The NI Auditor General said Economy minister Simon Hamilton issued a ministerial direction for the bail-out, which was endorsed by First Minister Arlene Foster and Deputy First Minister Martin McGuinness, "under emergency procedure."

Mr Donnelly said the direction was made after the department's permanent secretary raised issues about value for money and irregularity.

Mr Donnelly said he was monitoring the situation.

The PAC is to write to the Executive Office to establish "the political rationale" for the aid decision.

Most of the bail-out is coming from the Executive, but it includes a contribution from the airport.