Durham Tees Valley Airport saved, but turbulence ahead (From The Northern Echo)

Durham Tees Valley Airport saved, but turbulence ahead

8:00am Saturday 11th February 2012 in Darlington By Joe Willis, Regional chief reporter

A DEAL securing the immediate future of Durham Tees Valley Airport (DTVA) last night prompted calls for the new owners to pledge their commitment to the loss-making business.

The decision by the Peel Group to take back control of DTVA ensures it will remain a commercial airport for now, amid fears it was facing administration.

However, while giving the deal a cautious welcome, the region’s MPs and council leaders urged Peel to confirm its long-term plans for the airport.

Councillor Jim Beall, deputy leader of Stockton Borough Council, said: “To dispel further speculation and rumours about its future as an airport, I call on the new owners to make absolutely clear their intentions for its future and to give their commitment to retain and develop it as an operational airport.” Peel Investments (DTVA) Ltd, a wholly owned subsidiary of the Peel Group, is now the majority shareholder in the airport after purchasing Peel Airports Ltd’s stake.

Vantage Airport Group, formerly Vancouver Airport Services, bought a 65 per cent stake in Peel Airports from Peel Group in June last year.

The remaining minority shareholding in the airport continues to be owned by six local authorities – Darlington, County Durham, Stockton, Middlesbrough, Hartlepool and Redcar and Cleveland.

The change of ownership meant it would be business as usual for airport employees, airlines and passengers using the airport, the Peel Group said last night.

Peel Airports chief executive Craig Richmond said: “Since announcing in December 2011 that we were seeking a buyer for our shareholding in the airport, we appreciate this has been a period of uncertainty for the staff, our airline customers, passengers and for the region as a whole.

“I am therefore pleased that we have been able to conclude this sale process, with our partners, the Peel Group, purchasing our shareholding and continuing to maintain the airport’s operational activities.”

Peter Nears, from the Peel Group, confirmed the immediate future of the airport was secure.

He said: “We have seen significant interest and support for the airport from across the region during this difficult period and are looking forward to capitalising on this support and working with stakeholders in the region.”

Asked about potential development of land around the airport, Mr Nears said development was an important feature of any successful airport.

He said: “We need to do this in association with the local authority stakeholders.”

The airport has faced dwindling passenger numbers recently – to about 200,000 a year – and showed a £1.6m loss in its last accounts.

Darlington council leader Bill Dixon said the airport had been given a lifeline, and said: “I think the people of the Tees Valley, Durham and North Yorkshire have been given one last chance to get behind the airport, make use of it and keep it.”

The purchase by the Peel Group was welcomed by Sedgefield MP Phil Wilson.

He said: “At least the airport is being kept open as a going concern rather than going into administration, so we must look at it as a glass that is half-full, but I still believe the airport is facing problems which Peel needs to address.”

He said he would seek urgent talks with Peel to discuss the airport’s future.

Stockton South MP James Wharton said: “We all want to see Teesside continue as a passenger airport and be as successful as possible. We must all now pull behind the new owners and encourage them to ensure it becomes the commercial success it should always have been.

“Peel’s previous track record was not great, but this is a chance to put that right.”

Darlington MP Jenny Chapman welcomed the outcome, but said: “We now need to redouble our efforts to encourage greater use and greater numbers of flights and destinations.”

When councils sold their majority stake in the airport, it was agreed that the councils’ remaining 25 per cent stake could be reduced if Peel invested in the airport.