Newcastle International Airport loan repayments suspended as chiefs admit it will 'take some time' to recover after crisis

Bosses at Newcastle Airport have admitted it will ‘take some time’ to rebuild following the coronavirus pandemic.
Watch more of our videos on Shots! 
and live on Freeview channel 276
Visit Shots! now

A slump in business caused by the COVID-19 outbreak has seen the transport hub increase parking charges to make ends meet, with more price rises expected to be considered.

But a recovery plan is in place, with chiefs already indicating to creditors when they can expected loan payments to restart.

Stock image from PixabayStock image from Pixabay
Stock image from Pixabay
Hide Ad
Hide Ad

A spokeswoman for the airport said: “Newcastle International is a strong regional airport and is well equipped to withstand this challenging period.

“Flights have now started to return but the recovery is likely to take some time.

“There will inevitably be a short term impact upon investment, however, we are confident that in due course our long-term plans can be progressed.”

The North East’s seven councils – Northumberland, County Durham, Sunderland, South Tyneside, North Tyneside, Newcastle and Gateshead – collectively own a 51% stake in the airport.

Hide Ad
Hide Ad

Known as the ‘LA7’, the group signed a loan agreement worth £67.665 million in 2012/13.

Repayments are made in instalments due every six months, but according to a report for Durham County Council’s Audit Committee, these are expected to be halted until October 2022.

It added that although the latest accounts are not yet available, at the end of 2018 the airport had reported a post-tax profit of £7.435 million.

A message from the Editor:

Thank you for reading this story on our website. While I have your attention, I also have an important request to make of you.

In order for us to continue to provide high quality and trusted local news on this free-to-read site, I am asking you to also please purchase a copy of our newspaper.

Our journalists are highly trained and our content is independently regulated by IPSO to some of the most rigorous standards in the world. But being your eyes and ears comes at a price. So we need your support more than ever to buy our newspapers during this crisis.

With the coronavirus lockdown having a major impact on many of our local valued advertisers - and consequently the advertising that we receive - we are more reliant than ever on you helping us to provide you with news and information by buying a copy of our newspaper.

Thank you