Airport to get £18.5m emergency loan from city council

Birmingham Airport is to receive an £18.5m emergency loan from Birmingham City Council to stave off the threat of insolvency.

Passenger numbers at the airport have fallen by 91 per cent since the pandemic.

The loan was approved by the council 's cabinet group on Tuesday.

Birmingham City Council is one of seven local authorities in the region that are shareholders of the airport's holding company BAHL.

City Council leader Cllr Ian Ward said: “The risk here if we don't put this loan in and ensure the liquidity of the airport is that we would lose control of the airport as seven metropolitan authorities.

“I think it is in the interests of all of the West Midlands authorities and the people across the West Midlands that we do continue to exercise influence over the airport. ”

Greater Birmingham Chambers of Commerce welcomed the council 's intervention to help the airport - but warned further long-term support is required from Government.

Chief executive Paul Faulkner said: “It 's great to see that the Council have recognised the strategic importance of Birmingham Airport 's contribution to the regional economy and stepped in with emergency loan funding to help it navigate this incredibly difficult time.

“Birmingham Airport is embedded in the fabric of the region and we shouldn 't forget the significant contribution it makes to regional GVA and employment levels across the West Midlands - clearly, this loan will help boost liquidity levels and provide a welcome shot in the arm for an institution which is suffering from the ravages of the pandemic.

“However, the loan funding will mean little unless the Government steps in and provides the appropriate level of financial support required in the long term to help the Airport and the wider industry survive the crisis.

“With a vaccine providing some light at the end of the tunnel, policy makers at Westminster need to provide a clear roadmap on how travel restrictions will be lifted and how they intend to revive travel and business demand, otherwise the calls for a bright new era for Global Britain will ring rather hollow. ”