Birmingham Airport to receive loan of up to £5.7m from Coventry council...

[dutchman]

Shareholders have come to their aid



Birmingham International Airport will receive an emergency loan of £5.7 million from Coventry City Council, taking the total package from Midlands councils to £32.8m.

The city council along with six other West Midland councils is a shareholder of the airport holding company, BAH, with four of the seven local authorities providing financial support.

Birmingham City Council confirmed a loan of up to £18.5m in February, alongside a loan of up to £3.7m from Solihull Council and up to £4.9m from Walsall Council.

Ontario Teachers’ Pension Plan – 48.25 per cent shareholders – will also provide a loan.

Coventry’s cabinet will discuss a loan up to £5.7m on March 9 before approval at full council on March 16.

The loan would be made available as and when needed by the airport to ensure it can have the maximum impact on recovery.

The aviation industry has taken a hit during the pandemic with passenger volumes from April to December were down by 91 per cent, according to a statement issued by Birmingham Airport.

A meeting of Birmingham council’s cabinet last month branded it the “most severe downturn in [the airport’s] history”.

Coventry cabinet member for finance, Cllr Richard Brown, said it was important “to make sure the airport gets through this time”.