Clock ticking on flights
Further proposals to bring new flights from Durham Tees Valley
Airport could be lost, the leaders of all five Tees Valley
authorities have warned.
Earlier this month, two major holiday companies have proposed new flights, beginning in summer 2019. In order to secure the flights, the airport’s operator requested support from the Tees Valley Combined Authority’s £500k airport development fund.
However, last week, Council Leaders blocked Mayor Houchen’s budget when it became clear that the money requested had been earmarked for solicitors and consultants instead of support for the new routes. Instead, Redcar and Cleveland Council leader Cllr Sue Jeffrey had no option but to propose an amendment to the budget to guarantee the cash needed, a move supported by the other leaders.
Despite the amendment to guarantee the support for new flights, the Tees Valley Mayor continues to oppose it.
Talks will recommence this Friday, with
calls for the Tees Valley Mayor to get behind the new flight
proposals and guarantee the development cash needed. Cllr Sue
Jeffrey said:
“The stakes are very high here and time is running out. We have
a solid proposition to invest and grow our airport but the Tees
Valley Mayor is only interested in paying expensive consultants
to try to make sense of his uncosted election pledge to buy the
airport. It is simply reckless to put these new flights at risk.
Mayor Houchen needs to stop playing politics and support our
airport.”
Cllr Bill Dixon, who is the Combined
Authority’s Cabinet Member for Transport, said:
“The public will be rightly angry that, after the Tees Valley
Mayor made saving the airport such a large part of his election
campaign, he is now effectively blocking efforts to bring in
more flights.
Our airport is a valuable asset for our area – but airports are
worthless without flights. It’s time for Mr Houchen to commit to
making sure we secure these new flights.”
The proposal would see one of the largest increases in flights taking off from the airport since the financial crash hit in 2007 – providing a boost to the struggling airport which employs 60 people.
Notes to Editors
• The amendment proposed and agreed by the five council leaders
is:
“That given the lack of any new plan for Durham Tees Valley
Airport and the resulting risk to Local Authority investment in
the airport that, in line with the Combined Authority/Durham
Tees Valley Airport development proposal set out in March 2017,
the CA agree that the £0.5m funding for legal and financial
assessments set out in paragraph 28 support proposals made by
Peel Holdings in their letter of 2nd February 2018 for route
support, marketing and enhanced airport services. That this
arrangement be progressed with utmost priority to support Peel
Holdings in securing the viability of the airport post 2021.”
• New route development is increasingly competitive with airlines requiring significant start-up funding to ‘de-risk’ the services, often through a combination of subsidised or low airport charges and marketing support. Typically routes take up to three years to develop to break-even profitability, but an airline’s ability to sustain these losses is often less than twelve months. As a result, route support is required to deliver profitability as quickly as possible and increase the airlines ability to sustain losses during the ‘start- up’ phase.
• The Tees Valley Leaders are: Cllr Christopher Akers-Belcher, Leader of Hartlepool Borough Council and Combined Authority Lead Member on education and skills; Mayor Dave Budd, Elected Mayor of Middlesbrough and Combined Authority Lead Member on culture, tourism and innovation; Cllr Bob Cook, Leader of Stockton Borough Council and Combined Authority Lead Member on regeneration; Cllr Bill Dixon, Leader of Darlington Borough Council and Combined Authority Lead Member on transport and Cllr Sue Jeffrey, Leader of Redcar and Cleveland Borough Council and Combined Authority Lead Member on jobs and investment."