Tees Valley Combined Authority has given the green light to take a local airport back into public ownership.
Labour council leaders voted to back Conservative mayor Ben Houchen’s £40m proposal to buy Peel Group’s majority holding in Durham Tees Valley Airport.
Mr Houchen outside the airport
The deal includes a parcel of land previously earmarked for 350 homes with the intention of safeguarding it against development.
Mr Houchen tweeted: ‘IT’S OFFICIAL: Teesside Airport will now return to public ownership. Promise delivered.’
Despite some misgivings about the outlay – expected to reach £75m after covering operating losses and improvements – all five members of the authority’s board voted in favour at this morning’s meeting.
Leader of Stockton-on-Tees BC, Cllr Bob Cook, said: ‘With big investments come big risks – in this case the main concerns are the lack of a formal agreement with an experienced airport operator and the fact that the aviation sector is notoriously difficult and brutally competitive.’
However, he added: ‘A thriving airport can only be a great thing for local people, businesses and the economy.’
Peel Group failed to make a profit since taking over the operating of the airport in 2003. Operators withdrew services and annual passenger numbers fell to 130,000 in 2017 from a high of 900,000.
It indicated a closure of the airport after 2021 was likely unless it could be sold, at an estimated cost to the local economy of £32m.
This story first appeared on themj.co.uk.
Register now for full access
Register just once to get unrestricted, real-time coverage of the issues and challenges facing UK transport and highways engineers.
Full website content includes the latest news, exclusive commentary from leading industry figures and detailed topical analysis of the highways, transportation, environment and place-shaping sectors.
Use the link below to register your details for full, free access.
Already a registered? Login
