Serving the Teesside Business Community | 67
By Dave Allan
READY FOR
TAKE-OFF!
Under new management - mayor
Ben Houchen shakes on the deal
with Stobart's Kate Willard.
Stobart deal complete as airport
is back in hands of the people
T
ees Valley mayor Ben Houchen says
the region’s airport is back in the hands
of an aviation specialist after a deal
was completed to buy it back from previous
owners, the Peel Group.
And he is confident the only way is up
for Durham Tees Valley Airport after new
joint venture partners Stobart Group helped
create a long-term business plan.
Houchen convinced leaders of the five
local councils to sign off the £40m deal to
buy back the airport in January alongside a
£588m investment plan.
The airport master plan involves bringing
in a low-cost operator to push annual
passenger numbers towards 1.4 million
from the existing 140,000.
Under the terms of the new joint venture,
Stobart own 25% of the airport, with Tees
Valley Combined Authority retaining 75%
ownership and overall control of the airport.
“It’s signed off and we now own the
airport,” said Houchen, speaking exclusively
to Tees Business. “It’s now owned by the
people of Teesside.”
Expressing his delight with the joint
venture, the mayor added: “We’ve been
working on the airport’s business plan with
Stobart for more than a year.
“We’re not imposing our business plan
onto them. It’s as much their plan as it is
ours, so it’s something they, as established
operators of airports, believe is completely
achievable. We have a truly reputable
operator in place to help us turn it around.
“Stobart will be responsible for managing
and running the airport, which is something
they already do in Southend and Carlisle.
“Just as importantly, they’ve recently
announced a joint venture with Virgin in
buying the flybe airline, which means
there are potential opportunities to explore
additional routes, which is something we’re
obviously keen to do.”
Houchen had to work hard on delivering
his mayoral election promise to “buy
back” the region’s airport, with Peel initially
insisting the facility was not for sale.
Campaigners had been concerned that
Peel’s long-term plan was to close down
the airport with a view to selling off the land
for commercial and housing projects, and
Houchen admitted he was relieved to have
completed the deal.
“Everything I said about Peel was true,”
he said. “I don’t think they had the best
intentions for the airport. They weren’t in a
position to make the airport a success, so
their interest was in the land.
“In contrast, Stobart is an aviation
business. That’s what they do. Their chief
executive is a former chief operating officer
of easyJet.”
Houchen confirmed that, through
their links with flybe, Stobart officials
are exploring the potential for a new
Teesside-London air link via direct flights to
Southend, which has a similar hour-long rail
time to central London as travelling in from
Gatwick Airport.
He is also confident if Stobart can land
a deal with a low cost carrier – likely to
be flybe – it will see annual passenger
numbers eventually increase to 1.4 million.
“I know the potential introduction of
a London flight would be welcomed by
people across the Tees Valley,” he said.
“That won’t be direct to London but via
Southend Airport, from where there’s a
55-minute rail connection to the centre of
the capital.”
He added: “I appreciate that people have
given me some leeway and goodwill but we
will now see a genuinely credible operator
backing the business plan we’ve worked on
with them.
“There is real credibility to the plan in
terms of a long-term increase of passengers
1.4 million a year, more connections into UK
hubs, maintaining the existing access to
Schiphol and much more.
“It’s an ambitious plan but one that has
the stamp of approval from a company who
know what they are talking about and truly
understand the aviation sector.”
Houchen also confirmed an intention to
change the airport’s name back to Teesside
International Airport, dropping the unpopular
Durham Tees Valley moniker.