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Economic Development

Birmingham Airport to receive £18.5m council loan

Birmingham City Council agrees funding package with more capital expected from other shareholders to support airport hit by travel ban

Birmingham Airport is to receive a loan from the city council

Birmingham Airport will receive an emergency loan worth up to £18.5 million from the city council as the travel industry continues to suffer under the coronavirus lockdown.

The local authority has agreed to the funding support following what it called the most severe downturn in the airport's history.

The seven councils of the West Midlands county own a 49 per cent stake in the airport, a further 48.25 per cent is owned by the Ontario Teachers' Pension Plan and the remaining 2.75 per cent belongs to an employee trust.

Passenger volumes between April and December were down by 91 per cent, according to the airport.

Birmingham City Council's cabinet approved its contribution at its meeting this week but opposition councillors have expressed concerns that even more funding might be required further down the line.

The meeting heard that all seven of the West Midlands councils were approached to make a contribution with three others and the pension plan also agreeing to do so.

Cllr Meirion Jenkins (Con) said: "I see that we are having to provide a loan to maintain liquidity and we perhaps have no choice about that because, if we don't and they become insolvent, we could lose more.