Runway extension go-ahead
The following article is from the Birmingham post:
BIRMINGHAM International Airport will get its long-awaited runway
extension by 2012, it was confirmed today.
The two companies bidding to buy a 48.25 per cent shareholding in BIA
are prepared to enter into a formal agreement to build the 400-metre
extension across the A45 which will cost £120 million and open up
direct flights to China and the west coast of America.
The seven West Midlands district councils have agreed in principle to
allow the Ontario Teachers Pension Plan and Victoria Funds Management
from Australia to acquire the shares, but the two partners will have
to agree a comprehensive BIA development plan setting out a timetable
for new investment.
Birmingham City Council cabinet has backed the share sale, which
members said would safeguard the future of the airport and deliver a
huge boost to the region.
It will put BIA on an equal footing with Manchester and the London
airports, where the length of runways make it possible for long haul
flights to reach their final destination without stopping to refuel.
The benefit to the West Midlands economy is likely to be £1Êbillion
and 16,000 new jobs by 2030, according to figures produced by the
council.
Paul Tilsley, deputy council leader, said: "This is a great outcome
for Birmingham and the region. We have played a significant role in
ensuring the airport continues to be developed."
The runway extension and an international pier will be built at no
additional cost to council tax payers, he promised. Coun Tilsley
added: "We should not forget where the airport was 20 years ago. We
were still virtually flying out of the original hub. Great strides
have been made since then.
The new private sector partners will pay £420 million to buy the BIA
shareholding from Aer Rianta and Macquarie Airports, which announced
it wanted to dispose of its interest earlier in the year.
The seven West Midlands councils will continue to hold a 49 per cent
stake, with the remaining 2.75 per cent remaining with an employee
share scheme.
The agreement represents success for the seven West Midlands
councils. A planning application will be lodged with Solihull Council.
Daza