Luton airport continuing to be a financial drain (maybe £550…

luton-airport-continuing-to-be-a-financial-drain-(maybe-550…

Luton airport continuing to be a financial drain (maybe £550…

Luton airport continuing to be a financial drain (maybe £550 million+) to owners Luton Council
2021-11-25 10:19:00
In the last few days, the company (owned by Luton Borough Council) that owns Luton Airport, has changed its name from London Luton Airport Ltd, to Luton Rising. That will be its trading name. The company that operates the airport is London Luton Airport Operations.  London Luton Airport Operations has obtained agreement from Luton Rising that it can retain £45 million over three years.  This will support the airport’s recovery from the pandemic.  The money would have been paid by the operator to Luton Rising (ie. the council) if it had not been for the impact of Covid reducing passengers and flights. Luton council usually, pre-Covid, made a good profit from the airport, but that has now been reversed. The Council in 2019 receiving a £19.1m, and £15.8m servicing debt.  In September 2020 there was a £60m loan by Luton Borough Council to its airport company and it was expected that another £23 million would be paid. Then in June 2021 Luton Council loaned a further £119m to the airport. Now this is another £45 million, over three years. The airport is not looking like a great investment for the council … .Tweet   Luton Airport operator to retain £45m due to council 23.11.2021 BBC The operator of London Luton Airport will retain £45m that should have gone to the airport’s owners, a Luton Borough Council company. Luton Rising, a Luton Borough Council company that owns London Luton Airport, has agreed with its operator, London Luton Airport Operations, that it can retain the money over three years. The agreement will support the airport’s recovery from the pandemic. In a joint statement the companies said it would “provide certainty” for those who rely on the airport for employment. Alberto Martin, chief executive of London Luton Airport Operations, said the deal “creates reassurance for the thousands of people and the many local businesses who rely on us through the supply chain”. The airport supports 27,000 jobs and £1.8bn in economic activity, Luton Rising said. The operator will “retain £45m over a three-year period from past and future passenger income that would have been due to Luton Rising had passenger numbers not reduced”, the statement said. As part of the airport’s recovery from the impacts of coronavirus, the operator has committed to “delivering the real living wage for all its direct employees during 2022, and the reintroduction of a dedicated taxi rank for local Hackney Carriage drivers”. Luton Rising and London Luton Airport Operations Ltd will also work on “ambitious sustainability and net zero strategies”, the statement said. Graham Olver, chief executive of Luton Rising, said: “This agreement sets out how we will continue to work together over the coming decade to build back better, stronger and greener, and support the vital economic and employment recovery that we will want to see in the supply chain and across the region. “Importantly for Luton residents, this has also been achieved with no direct impact on council tax, and continues to protect the vital investment we make every year in voluntary and community services to improve people’s lives.” https://www.bbc.co.uk/news/uk-england-beds-bucks-herts-59388493 . Luton Airport loaned £119m by council as pandemic measure 29 June 2021 BBC The council also borrowed £60m last year for Luton Airport A council is to loan a further £119m to the airport it owns to help it recover from the coronavirus pandemic. Labour-run Luton Borough Council agreed on the support package for London Luton Airport Ltd at a meeting on Monday. Andy Malcolm, portfolio holder for finance, said if the loans were not agreed the council would have to “sell its most valuable asset”. The total loaned to the airport now stood at £507m, including £124m “in response to the pandemic”. Andy Malcolm said “the airport has been very good to us as a the town and it will be again” The Liberal Democrat opposition leader David Franks has claimed the airport has been given “sacred cow status”. The council’s

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