Mon, 18 Apr 2011 | BUSINESS SALE
The local authority owners of Newcastle airport have erected a ‘for sale’ sign as its loan repayment deadline approaches.
The seven local councils at Durham, Gateshead, City of Newcastle, North Tyneside, Northumberland, City of Sunderland and South Tyneside own 51 per cent of the airport. KPMG is to advise them ahead of a deadline in December 2013 for a £320 million loan repayment originally taken on in 2006.
The operating company for the airport recorded a decrease in profits to £13.8 million for 2009, compared with £19.4 million for the previous year. LA7, the firm that manages the council’s stake is said to be £4.2 million in the red after having to pay £22 million in interest in 2009.
It is understood that if the councils fail to secure a new equity investor to put cash into the airport they will have to sell the stake.
The owner of the remaining 49 per cent of the hub, Copenhagen airport, is also reportedly ready to sell.
Newcastle airport was opened in 1935, and cost £35,000 to build. The first flight linked Croydon, Surrey and Perth, Scotland. In 2005 the airport was the fastest growing with 5 million passengers per year.
Premier provider of carpentry and joinery in London and counties, catering to a diverse clientele encompassing luxury and mid-range property developers, main contractors, and discerning private clients.
A concept which led to revolutionizing the restaurant industry, offering an efficient and profitable approach to food production and targeted marketing.
As a specialist in Italian Motorcycle Parts and Accessories supplies, the business has developed expertise in sourcing and offering a comprehensive range of high quality products.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.