https://www.gazettelive.co.uk/news/t...n-63m-28346873
Teesside International Airport has drawn down more than £60m in loans out of a £88m taxpayer pot in its first four years. Annual accounts published online show the taxpayer-owned airport remained in the red - although the overall loss has dropped by over 60% from £11.9m in 21/22 to £4.5m the following financial year. Turnover more than doubled as international travel returned following the impact of the Covid pandemic.
By March 2023, the airport had drawn down more than 70% of the Tees Valley Combined Authority (TVCA) loans - which span until March 2029. The airport is ahead of a forecasted business plan to return to profit after being brought back into public hands for £40m in 2019. At the time, a further £35m was to be drawn down as required for the first decade to help fund the site through a TVCA loan.
Over the years, this has been increased to £64.4m - which comprises the original £35m loan and the two additional loans of £10m (approved in 2021) and £20m (approved in 2022) "required due to Covid 19 and the impact of the global pandemic on the aviation industry".
The day-to-day working capital requirements are met through cash generated from operations and utilising a loan facility provided by the Tees Valley Combined Authority, the accounts state.
The loans are being used to "support the expansion of Teeside Airport including terminal improvements, capital investments in the freight and new business park, operational costs including the general running of the airport and paying staff wages," an airport spokesperson says.
The accounts report states: "A [loan] facility for an amount of £23.6m which is due to be used to fund the Southside development is in place. The total amount drawn down at the year end under both facilities was £63.3m and further draw downs are forecast to be made over the next two to three years in line with the company's development and expansion plans."
The loan is repayable on demand but the airport received a letter of continued support for not less than 12 months from date of signing from the TVCA. The £23.6m loan to build the Southside business park - a £200m vision to create more than 4,000 jobs in the next 15 years - was signed off by the Tees Valley Combined Authority in late 2019.
Since the 2021/22 financial accounts were published - where £44m had been drawn down from both loans - a further £19m has been accessed by the airport. The airport spokesman added that, at this stage, loan spending plans remain "broadly within forecast".
"However, if additional funds were required it would be a decision for the Tees Valley Mayor and Cabinet which is made up of the leaders of the five Tees Valley Councils."