Greater Manchester Mayor Andy Burnham has called on the Government to help the region's ten councils support the Manchester Airport Group after they pledged a £250m investment package.
The finance package for the group - which also includes East Midlands and London Stansted airports - , and was pledged despite the authorities not expecting to see significant repayment for a couple of years.
At a remote press conference on Tuesday, Mayor Burnham was asked why Greater Manchester's ten councils should be paying to keep the group afloat.
He responded: “Because it’s fundamental not just to the economy of Greater Manchester, but to the economy of the whole of the North of England, alongside John Lennon Airport [in Liverpool].
“Manchester is crucial because of those long-haul links between the North and Asia, North America and elsewhere. We have to get the airport through this, and as shareholders, the councils have to do what shareholders do. They protect their investment.
“The investment produces a dividend in good times, but also it comes with challenges throughout the more difficult times, so they are not doing anything that any investor wouldn't do.
“The challenge is more towards the Government. Aviation hasn't had a deal yet. Airports are critical to the regional economy not just in the North but in all parts of the 海角视频.
"If we are going to get this recovery off on the right foot, we do need to go into this in the spirit of partnership and not leave councils that are really struggling to manage this."
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The press conference was held alongside Liverpool's Metro Mayor Steve Rotheram, in which the pair laid out their economic recovery plans for the North, and their 'Build Back Better' campaign.
Mayor Burnham added: "We heard yesterday that the Secretary of State said he would not cover the costs councils have lost as a result of this [pandemic].
"Well I consider that to be unfair because the way in which local government finance has been handled in recent years, has forced councils to be even more entrepreneurial. In fact, they've been encouraged to do that.
"So why punish them now, when they've been forced down that path, and we've hit a situation that's beyond anyone's control.
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"I think the key point is recognising the crucial nature of these airports to the regional economy."
He said he had raised the subject with Prime Minister Boris Johnson during a call on Friday, with the PM responding positively.
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"[Mr Johnson] said he recognised how critical it was to reviving the economy of the North of England. What we are asking for is a fair partnership between national and local government to underpin that critical asset and key gateway to the whole of the north of England."
Manchester Airport has remained open but with passenger numbers down from 80,000 a day to just a few hundred.
Some 50,000 jobs - either directly or in other sectors such as freight, logistics and catering - also rely on it, while other parts of the city economy that are now particularly exposed, including the property sector, Manchester University and tourism, are also closely linked.
A MAG spokesman said: “The coronavirus pandemic has had an unprecedented impact on the aviation industry, and economy as a whole.
“MAG is well positioned to deal with these challenges and has acted quickly to protect jobs, safeguard the business for the long term and ensure its airports are well placed to contribute to a full and balanced recovery for the 海角视频 economy.
“As part of MAG’s response, we have instigated a range of measures to preserve cash and limit the impact of significantly reduced passenger volumes. These include reducing costs, delaying non-essential capital expenditure and, as is common when businesses encounter such circumstances, talking to our shareholders about the appropriate balance of equity funding.
"Taken together, these steps will put MAG in a strong position to respond positively to a recovery in air travel, which in turn will deliver wide-ranging economic benefits to the communities and regions that our airports serve.
“MAG has successfully increased traffic volumes every year for the last 10 years, supporting jobs and growth across the North, the Midlands and the East of England, as well as returning almost £600m in cash distributions to the Greater Manchester councils over the past five years.
“We look forward to getting back on track with our ambitious growth plans and helping to restart the 海角视频’s regional economies as soon as possible.”
According , Manchester Council is expected to provide the biggest share of the loan package, at around £143m, in line with its larger stake in the company.
It is understood the other nine boroughs are expected to put in £13m each.
Senior local authority figures said the move was aimed at protecting significant long-term town hall investment in the airport, along with safeguarding tens of thousands of jobs that rely on it as a major engine of the local economy.
One official said the authorities effectively had ‘no choice’ but to protect their asset.
Sir Richard Leese, leader of Manchester council and a board member at Manchester Airport Group, said: “Manchester Airport is critically important to the future success of the city.
"It is both an international gateway for trade and travel and somewhere which creates and supports tens of thousands of jobs, both directly and indirectly - around 50,000 currently, a figure which is set to grow further in the years ahead. It gives the city, and Greater Manchester as a whole, a huge competitive advantage."