Stagecoach Group CEO Brian Souter (left) said the decision had killed off morethan 10 years work and £500,000 development costs on the transport link, "a long and painful process. We are completely scunnered and have no intention of appealing against the planning decision," reports  The Herald. (Right: Hell on wheels, the tram debacle.)

The hovercraft was predicted to draw around 870,000 passengers a year and  popular with staff at the Scottish Government offices at Victoria Quay, as well as shoppers travelling to Ocean Terminal centre as the service would have cut nearly an hour from peak period travel by avoiding the Forth Road Bridge.

Councillors voted by six to five against the proposed Portobello facilities after a site visit during which concerns were expressed about  appearance and the lack of any benefit to local residents. The Edinburgh council-run regional transport body SEStran also contributed £92,000 of public funds.

A spokesman for Stagecoach said said the Council decision sends the wrong message about Edinburgh being a place to invest, following the fiasco surrounding the tram development, which is three years late and more than £200m over budget.

Russell Imrie, chairman of SEStran (left)  said: "SEStran regrets the demise of the project, which we believe would have been a valuable addition to the options available to commuters."

Not a very good auger for the new Forth Ports-Edinburgh Leith development  either.