Quote: The running of one of Scotland's only council-operated airports is being taken over by a state-owned company.
Highlands and Islands Airport (HIAL) will take the reins at Dundee Airport from the city council in September, the local authority announced.
The council said the operation was increasing pressure on budgets and the move would free up £1.5m.
HIAL, owned by Scottish ministers, currently operates 10 airports in the north of Scotland, including Inverness.
Scot Airways provides the only scheduled service at Dundee, with five daily weekday return flights to London City Airport as well as weekend services.
Dundee City Council leader Jill Shimi said: "Operating the airport has meant increasing pressure on the council's already limited budgets and that is why we started negotiations with the Scottish Executive last March."
The deal came as the authority hopes to announce a council tax freeze for the coming year.
Union talks are expected to get under way shortly to maintain the airport staff's current staff terms and conditions.
In addition to Scot Airways there is a weekly seasonal charter to Jersey operated by a VLM Fokker 50