Liverpool city council has bought a stake in John Lennon Airport, but refuses to say how much its spent on the deal.
“It’s commercially confidential I am afraid,” said a council spokesman when asked by Liverpool Confidential. It declined to confirm a report that the council has snapped up a 20 percent stake in JLA at a cost of around £12m.
The announcement of the deal today comes just weeks after it was disclosed that the airport’s highly promoted “gateway to the world”, a link to Amsterdam’s Schiphol Airport from Flybe, is being ditched because of low numbers.
Read: Flybe scraps Amsterdam flight after just six months
The council said it has formally signed an investment deal with JLA to help it continue to grow into the future.
Liverpool mayor Joe Anderson said money is not being taken away from frontline services to fund the airport deal.
The council said in its statement: “The airport has seen an increase in passenger numbers, airlines and destinations served over the last year and now the council has become part of two joint venture companies to invest funds on the basis that it will make a commercial return.
“The council has acquired a stake in the airport in the form of shares and the investment will be used to further improve facilities for passengers and airlines and maximise the opportunity for the airport and city region to be a key gateway for the Northern Powerhouse.”
As Peel might say: 'Ay thenk you' (Graphic by Prof Y Chucklebutty)
Mayor Anderson said: “John Lennon Airport delivers a huge economic boost for the city region, employing thousands of people directly and indirectly.
“It is the gateway to the city from many destinations and it is absolutely vital that it continues to grow, create more jobs, boost economic growth and develop tourism. This opportunity to play a more active part in its future expansion and success makes it a sound investment for the city council.
“This is part of our Invest to Earn strategy where we are able to make investments that deliver a return which we can then plough back into supporting council services. This funding can only be used for investments and we are not taking money away from frontline services for it.”
The city’s investment was welcomed by Robert Hough, chairman of Liverpool John Lennon Airport and also chair of Liverpool Local Enterprise Partnership. Hough is also a non-executive director of Peel, which owns the airport as well as the Port of Liverpool.
Robert Hough said “We are delighted by the city council’s decision to invest in LJLA. This investment complements the council’s existing role in supporting the local and regional economy and allows the city to share in the financial success of the airport. They will bring strong support both financially and strategically, with interests aligned to those of Peel and the wider City Region.”
Cllr Richard Kemp, leader of the Lib Dems in Liverpool has fired a list of questions at the council demanding full disclosure on the deal.
“I want to know what the council has invested our money into. Is it in Peel Holdings plc or one of the more than 400 companies that make up the Peel family of businesses, many of which are in offshore tax havens?
Also want to know what due diligence has been carried out, and importantly how much bang we are getting for our buck. It is a scandal we are not being told.”
According to figures from JLA, passenger numbers in 2015 were eight percent up on 2014, the highest since 2012 and are already over 20 percent higher for the year to date in 2016.
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