The lines are now totally blurred. The concession was meant to last until 2028. It was extended until 2031 on the understanding that the private airport operator LLAOL expanded the capacity of the airport to 18million. This work has never been completed, as there is still a missing section of Taxiway Alpha that was meant to reach almost to the end of the runway. The terminal never had its promised ceiling put in on the new build leaving every pipe, conduit, heating duct and cable on show leaving much of the terminal looking half finished.
The whole idea of the concession from day one was that the airport operator took the financial risks and not the Council. This was how the terminal, that was built in I think 1999, was financed via the then franchisee who eventually sold the concession on.
London Luton Airport Ltd, now renamed Luton Rising (Temperature), was a zero risk company with no staff. It just collected rents and concession fees for distribution to charities and to pay a large dividend to the Council.
Now it pays nothing and is allowing concession fees totalling £45m over 3 years to be kept by the airport operator. This is claimed to be Covid payments despite the airport operator already paying nothing to the Council during 2020 and 2021. So what is this money going towards? How about a nice new apron for starters? How about paying for the airport operators planning application for 19million passengers and the KC representing the airport operator at the public inquiry? All speculation but LRT operates in secret and deals between the two are viewed as confidential.
Then there is the Dart. Why has LRT built it at their risk and not the airport operator who are being paid £6m to staff it on behalf of LRT? That should have been worth a few more years on the concession, which, by the way has been extended to 2032. We can speculate that was the intention but maybe the bean counters at LLAOL could not make the sums add up. This is not surprising seeing the Dart has a book value of only £77m when it cost £281.
So from a zero risk company LRT now have debts of £580m with loans from the Council secured on the airport that the Council already owns.
Last edited by LTNman; 16th Nov 2022 at 22:25.