Birmingham airport support loan from Coventry must ‘go through a political process’

An emergency loan for Birmingham Airport has not been granted by Coventry City Council.

But the head of the council insisted that the authority – a shareholder in the airport – has pledged to help as the impact of the Covid-19 pandemic continues.

Passenger volumes for the airport from April to December last year fell 91%, according to an official statement.

An emergency loan has been put in place for the airport, with Birmingham Council contributing up to £ 18.5million, Solihull Council contributing up to £ 3.7million while Walsall’s advice will provide up to £ 4.9million.

Sandwell and Wolverhampton’s advice confirmed they will not provide loans, while Dudley’s advice declined to comment.

The seven West Midlands authorities are all shareholders in the airport, holding 49 per cent of the shares.

Coventry City Council said he was “committed to helping the airport” but would not confirm at this stage whether a loan was planned.

Chief Cllr George Duggins said: “Despite the COVID-19[female[feminine pandemic, Birmingham International Airport remains one of the most important economic engines in our region and will play a crucial role in the recovery of our region.

“It employs around 7,000 people, supports over 25,000 associated jobs and represents around £ 1.5 billion to our economy, bringing many benefits to Coventry residents and businesses.

“But like the aviation industry as a whole, the global coronavirus pandemic has hit the business hard and it is naturally facing difficult and unprecedented times.

“As one of the airport’s seven shareholders, who have brought us significant financial dividends to support our services in recent years, we are committed to helping the airport ensure it is ready to bounce back quickly. and strongly when travel restrictions are finally lifted. and life returns to a kind of normalcy.

“However, if such support was needed, it would go through the political process of the Council in the normal way.”

Birmingham council agreed to grant the loan at a cabinet meeting on February 9 – but opposition advisers have expressed concerns that the council is expected to lend more at a later date.

The meeting heard that the seven local authorities making up the West Midlands have been approached for financial assistance for the airport.

Four make a loan with the other shareholder, the Ontario Teachers’ Pension Plan.

To subscribe to our newsletter, delivered free to your inbox, Click here.