Originally Posted by Peel
Is it true that Peel got the airport for “next to nothing”?
At the point of acquisition by The Peel Group in 2003, DTVA was making a loss of circa half a million pounds per annum. In addition, the business was carrying significant historic cost burdens including large pension liabilities. This would of course be reflected in the value of the business. And the value was set by the local authorities at the time.
Airports are renowned for their large capital expenditure requirements. At DTVA, The Peel Group has invested in:
– Fire vehicles – Airfield resurfacing – Air traffic control radar enhancements – X-ray security equipment – Car park extensions and surfacing
This list is far from exhaustive. In addition to £26 million in capital investment, much of which is not necessarily obvious to the travelling public, the business has borne the entirety of the annualised financial losses creating an investment of over £36 million, relieving the local authority and taxpayer of this burden.
They definitely read this forum!