Manchester Airport Plc (MAPLC) sought the approval of shareholders at an Extraordinary General Meeting on the 16 April 2012 for the disposal of shares in Humberside International Airport Limited.
Given the urgency of this matter under rule 16 of Part IV of the Council’s Constitution, an urgent decision was required for the Council’s minority shareholders vote to agree to the disposal, as set out above.
A strategic review carried out by Manchester Airport Group identified Humberside would not form part of the longer term asset base for the Airport. MAG has identified that:
1. Humberside International Airport Limited is forecast to generate earnings before interest, taxes, depreciation and amortisation (EBITDA) of £0.1M and make an earnings before interest and taxes (EBIT) loss of £0.4M for the year ending 31 March 2012.
2. Humberside International Airport Limited has a defined Benefit Pension Scheme with an estimated £6.6M deficit as at September 2011 (valued on a cessation basis).
3. Humberside International Airport Limited has a short term cash funding requirement of £3M over the next 3 years.
4. The Airport makes up a disproportionate amount of Senior Management Time relative to its size in MAG.
5. Humberside International Airport Limited is considered non-core to MAPLC’s strategy.
Manchester Airport Plc has received an offer to sell its 82.7% shareholding in Humberside International Airport Limited for circa £2.3M. The Airport has confirmed that this offer commercially
represents best value for its shares and fits in with the longer term strategic review of MAPLC.
The proposal to sell Humberside International Airport Limited is classed as a “reserved matter” under the Articles of Association and therefore, needs the agreement of the shareholders by ordinary resolution.
Clearly the RL rumour has substance, could we see the airport become another business airport like Oxford?
Interesting to read that MAG PLC have 'received' an offer to sell it's shares.
£2.3m is a bit of a joke figure considering the assets there, but I suppose taking in the liabilities of the airport in its current form (£0.4m loss, £6.6m pension deficit, £3m over 3 years CAPEX requirement), that it probably is a good offer. Whoever is buying must have a vision for the airport and it will create jobs as all positions lost in centralising jobs (HR, Commercial etc) will be recreated, so it could be good for the airport.
Last edited by pottwiddler; 1st Aug 2012 at 22:21.
Depends what you would call 'decent growth'? Clearly the airport has taken a hit both by operators consolidating and DSA competing in the leisure market, but as you can see the relatively small loss can be turned around, and the airport is perfectly located to cash in on the renewable energy industry set to grow in the Humber region.
With the exception of DUB, I wouldnt say routes have failed as much as the airport being unable to lower their fees for a couple of weekly flights to ALC, though HUY was all set to operate this year until FR removed some based units due to the airbridge dispute, so the route itself cant have performed too badly (and by all accounts it didnt).
It seems odd though especially with its location that it's never expanded much . It's close to the motorway and has hull just over the water ( Though they might have been better buying somewhere like brough) but still it runs almost the same number of flights year round . Not many if any winter holiday flights . Is there any scope for expanding ? Can it take 767/777 for example or larger even ? . Their Masterplan does show expansion of the apron but it seems quite constrained . DSA of course and as we gave discussed to death elsewhere has acres of extra room. Yet HUY established for years hasn't clung onto what it had . Dublin ought to be a good route . Cork and Shannon as well . ( DSA for them too of course ) but being close to Hull and Scunthorpe gives it a good footing to do better . Klm must stay due to the helicopters . But If it got closed by for whatever reason could DSA handle or be in reach of the helicopters or do they alone make HUY uncloseable . I like HUY ok the terminal Is old but last time I went for a nosey back in 2007 it seemed friendly n welcoming . DSA is almost a austere as some of the places it serves used to be in the cold war . In terms of routes how about Edinburg or Glasgow or even highlands airports such as Inverness and sumburgh . Sumburgh of course is heavily oil . They could run the Emb up there prob be an hour m a half flight straight through . Might be a niche idea . Heck even stornaway all these have oil related Nd fisheries stuff . Seems a wasted opertunity .. So what do you reckon pug ? Bring those routes offer in turn onward connection to holiday routes by changing to a tour operator at HUY . Sumburgh n Stormoway direct links and Inverness tourism route .
As a small regional airport it was always built to serve a local market. There will be people working on expanding the route network. Whether a new owner can breath newe life into the place remains to be seen, but if this interested party does make the purchase then they must think there is money to be made.
In the past, when airport and airline have had the same non-Govt owner, things often turn out less well than anticipated.
I don't have a huge amount of knowledge of Humberside airport, but my understanding is that the last few years have been less than ideal for Hull and the region. Since opening, Doncaster airport seems to be doing rather better than Humberside for local leisure based traffic (admittedly not Eastern's customer base) and looks likely to continue doing so given its location.
It seems unlikely that Eastern will merge with Bristow, CHC or KLM any time soon.
So what is the economic rationale for Eastern owning HUY airport ? Unless there is something to do with land value in the accounts, I'm struggling to see how they will be able to make money where MAG could not
Last edited by davidjohnson6; 2nd Aug 2012 at 21:01.
Reason: Same owner statement applies only to non-Govt entities
I'm struggling to see how they will be able to make money where MAG could not
DavidJohnson, The reason MAG did not make money was that they never really wanted the airport in the first place, DSA was the driving factor for the purchase. All MAG did was to take flights from the airport and move them either to MA or EMA, The iceland air fish flights is a prime example. 5 days a week from huy then down to 1 with the rest to EMA then eventually all to EMA.
I notice that the nearest train station to HUY is at Barnetby, about 3.5 miles from the terminal. I note also that Barnetby is a pretty small station, has no taxi rank of its own and is without a bus service to the airport, but that the Humberflyer hourly bus from Hull passes close by.
Does he Humberflyer actually stop anywhere near Barnetby station ? Timetable from Stagecoach makes no mention of any stops between Barton and HUY If the bus does not stop near the train station, why do the airport / local council not encourage it to do so ?