£5.7m support package for Birmingham Airport is approved by councillors

A £5.7 MILLION support package to help ease Birmingham International Airport through the coronavirus has been agreed by councillors in Coventry.

Coventry City Council is one of seven local authorities in the West Midlands who are shareholders of the airport holding company BAH.

Four of those, including Coventry, are providing loans totalling £32.8m.

Birmingham City Council has confirmed a loan of up to £18.5m, while £3.7m is being loaned from Solihull Council and up to £4.9m from Walsall Council.

Coventry’s cabinet member for finance, Cllr Richard Brown, said the council was “putting an arm around a key asset” and “saving vital jobs”.

He said: “Birmingham Airport is of huge value to both the local and regional economy with an estimated gross value added of approximately £1.5bn, and it is estimated 7,000 direct and another 9,000 indirect jobs.

“This council owns 5.79 per cent and this has averaged something like £1.6m a year from the airport back into its account.

“The airport has restructured during Covid and forecasts show a fast return to profit post-covid and these forecasts are of a very prudent nature.”

The aviation industry has taken a hit during Covid with passenger volumes at Birmingham Airport from April to December down by 91 per cent.

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

The loan received unanimous backing with the opposition Conservative group leader Cllr Gary Ridley adding: “Birmingham Airport is a huge asset for our region.

“Just imagine trying to get people to invest in Coventry and them having to fly into East Midlands Airport to visit us or fly to Heathrow and get the train up.

“It is inconceivable that we couldn’t have an airport in our region.”

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