The story is an indictment of the risks the council has taken and how it has all gone wrong. London Luton Airport Ltd (LLAL) was set up in 1998 as the owner of the airport and the collector of airport income. Risks and investments were carried by the airport operating company (LLAOL) for a 33 year concession agreement, which ends in 2031, including passenger targets to reach and investment in airport expansion to 18m passengers.
Now the roles have been reversed. LLAL, which was meant to be a zero risk company with no debt and no staff, has borrowed hundreds of millions of pounds from the Council who borrowed the money themselves for pre expansion work while the airport operator won't put in a penny including chipping into the Dart project. The bottom line is that LLAL would be bankrupt, as it can't afford its interest payments to the Council and the extra money required for the Dart, without a Council bailout. The bailout this years is £60m and next years is forecast to be £23m.
It doesn't end there as the existing bus service between the airport and the terminal is part of the Thameslink franchise so is at no cost to LLAOL, LLAL or the Council. This is why it has run everyday despite the airport having no passengers on some days. From next year LLAL will be paying the shortfall in income from the Dart, as there will be a contract in place with the company providing the trains for maintenance and staff costs worth millions plus a £243m bill to pay off in easy instalments. No wonder the airport operator did not want to know.
Last edited by LTNman; 13th Jul 2020 at 18:54.