The Leader of the Council – Minutes – 1 August 2012
The corresponding report of the following item (Minute 25 refers) contains exempt information as defined in Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972 (as amended).
25(6) FUTURE OF HUMBERSIDE INTERNATIONAL AIRPORT – The Chief Executive submitted a report which explained that Humberside International Airport was important to regional sustainable energy developments and for sustaining the area’s current industrial base. Humberside International Airport Limited (HIAL) was 83% owned by the Manchester Airport Group (MAG), the balance of 17% was owned by North Lincolnshire Council. MAG had decided to sell their share of the Airport to Eastern Airways (EA). The report considered the financial implications for the council and actions the council needed to take as a consequence of the decision.
Humberside Airport was one of several regional airports that had its financial circumstances adversely affected by the current economic conditions. Consequently MAG wished to sell its interest in HIAL, on 1 August 2012. Competition rules in the airport industry meant that this might allow them to acquire another, more profitable Airport.
The report outlined the financial and staffing implications and how the ongoing operation of the Airport was seen as vital for the success of the council’s industrial development initiatives on the South Humber Bank.
The decision was urgent because commercial discussions between all parties had continued until very recently and MAG and EA wished to conclude the deal on 1 August 2012.
Resolved – That a package of support for the ongoing viable operation of the airport be approved, as follows:
(i) Pension issues: HIAL employees to transfer to the NLC section of the ERPF on termination of the scheme, with the resultant costs to be met by MAG
(ii) £1.04m loan: to be exchanged for Preference Shares of an equivalent value
(iii) That the council’s precise role as shareholder be the subject of further negotiation with HIAL.