Gloucestershire Airport is now costing local taxpayers approximately £2.7 million annually, nearly double the previous £1.4 million loss reported when the airport was first put up for sale. Cheltenham Borough Council and Gloucester City Council jointly own the Staverton site, and both are facing increased financial pressure following the collapse of a major sale deal.
Efforts to sell the airport to Horizon Aero Group fell through after more than eight months of negotiations. The deal failed primarily because the final offer was significantly lower than the original asking price of £25 million. Council leaders stressed that no individual or party was to blame for the failed sale, describing the situation as unfortunate but unavoidable.
Council leader Jeremy Hilton acknowledged the hard work of bidders and council officers alike. “Nobody is to blame; it’s just one of those things when a sale falls through,” Hilton said. He highlighted the complexity of the site and praised the commitment of all involved, including legal and property agents.
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The council had hoped the sale would generate £4.5 million after debts were cleared, providing vital funds to ease financial burdens. Instead, officials are now focused on maintaining safe and effective airport operations while considering future options to manage the site sustainably.
Hilton emphasized the importance of attracting business jets through infrastructure improvements like new hangars, modern radar systems, and development of the CGX business park. Business jets bring in significantly higher landing and service fees compared to private propeller planes, which barely generate revenue.
During an overview and scrutiny committee meeting, Hilton revealed that they realized the sale was unlikely to proceed a few weeks before negotiations ended, after reviewing final bids from Horizon Aero Group. The offers fell short of original expectations and would have left the councils with ongoing liabilities.
Concerns were raised about the financial impact of the failed sale on the councils’ ability to repay a £15.5 million emergency Government bailout loan. Andy Hearne, the City Council’s head of place, confirmed the expected capital from the sale had been factored into their recovery plans, which now require revisiting due to the lost funds.
The airport’s operating losses have grown from approximately £1.8 million at the start of the marketing process to the current estimated £2.7 million, equating to a £450,000 increase in costs for each council. The failed sale has also incurred additional expenses, including legal and consultancy fees totaling around £150,000.
Looking ahead, council leaders are committed to minimizing losses and exploring immediate actions with the airport board to improve financial performance. Despite the current turbulence, the focus remains on stabilizing the airport’s operations and developing a sustainable future for Gloucestershire Airport.