AROUND £250 million is being pumped into ScotRail and Caledonian Sleeper services to ensure they can continue operating during the coronavirus pandemic.

Transport Secretary Michael Matheson said the emergency arrangements had been put in place for six months but further public funding may be needed for "an extended period of time". 

He also told MSPs that Edinburgh Airport is dealing with fewer than 1,000 passengers a day and the aviation industry is likely to take several years to recover. 

Ministers previously announced ScotRail and the Caledonian Sleeper would be temporarily nationalised to help the services cope with Covid-19.

Mr Matheson was giving evidence to Holyrood's Rural Economy and Connectivity Committee. 

He said an eight-carriage train between Glasgow Queen Street and Edinburgh Waverley would normally carry more than 500 passengers. 

But with social distancing in place, it will probably be able to carry fewer than 100 passengers.

Edward Mountain, a Conservative MSP and the committee's convener, suggested the final cost to the public purse of keeping the rail network running could be as high as £1 billion. 

Mr Matheson said: "We've put in place an emergency arrangement within the franchise agreement for both the Caledonian Sleeper and also for the ScotRail franchise. 

"That's been put in place for the next six months. It will be reviewed in September. 

"It's the same arrangement that's been put in place for train operating companies all across the UK, given the big drop off they saw in passenger numbers and the impact that has on their revenue. 

"The estimated cost for six months across both franchises is in the region of about £250 million. 

"The final cost in that particular variation to the contract is dependent on how long we have to extend the existing waiver within the contract."

He added: "A 385 service Hitachi train operating with eight carriages between Queen Street and Waverley can carry in excess of 500 or so passengers. 

"But actually with physical distancing, it will probably actually be less than 100 passengers that they'll be able to carry. 

"So there is a potential for an extended period of time beyond the initial six months where we will have to continue with the existing arrangements, and we'll have to look at what financial provisions we put in place in order to manage that."

Mr Matheson said train operators are experiencing the same challenges across the UK.

Meanwhile, the Transport Secretary said there has been a "massive drop off in the aviation sector over a very short period of time".

He added: "If you take an airport like Edinburgh Airport, in the course of a year would deal with in the region of around 15 million passengers. 

"At times they are dealing with possibly less than 1,000 passengers per day, given the drop off that there has been."

He said airlines have fallen into financial distress very quickly.

He added: "The initial expectations that the aviation industry has was that they thought that the sector would bounce back quite quickly from this pandemic. 

"However the view from the discussions I've been having with them is that they have now moved to a position where they think the recovery within the aviation sector will be longer one, and it will take several years to return to the normal levels of passengers that they had prior to the pandemic."

Mr Matheson said airlines are getting rid of planes, which will have an impact on the range of flights they are able to provide. 

He said the Scottish Government has put in place measures to support Loganair because it is critical to island connectivity. 

Ministers are now involved in identifying key routes – such as those to international hubs and the US – to ensure they can operate again as soon as possible.

Elsewhere, the Transport Secretary said an arrangement to subsidise bus operators will be in place until at least June.

Passenger levels on buses are expected to be as low as 25 per cent when they start to step up services.

Mr Matheson said there is "no doubt" ministers will have to look at providing further financial support.

He said demand for public transport has fallen by between 85 and 90%, while operators have reduced services across all modes.

Meanwhile, walking and cycling has increased.

Mr Matheson said he will set out a transport transition plan in the coming weeks.