Gatwick Airport Increases Government Borrowing by £ 75m

Gatwick Airport increased government borrowing by £ 75m last week to support its finances during a long travel suspension.

Gatwick Airport increased its government debt by £ 75m last week to strengthen its finances during a long travel suspension.

The latest funding, according to a document the email saw on Sunday, means that Gatwick borrowed £ 250m under the Bank of England’s Covid Corporate Financing Facility (CCFF) scheme.

Gatwick Airport applied for access to CCFF in August, saying it was an emergency measure at the time and wanted to stay out of money.

Grounding: France’s VINCI Airport and Gatwick Airport, owned by the $ 71 billion fund GIP, have the option of accessing an additional £ 50 million under a £ 300 million CCFF facility.

However, due to the blockade and travel restrictions, Gatwick Airport currently has access to a total of £ 250m and has 12 months to repay.

Gatwick Airport, owned by France’s VINCI Airport and the $ 71 billion fund GIP, has the option of accessing an additional £ 50m under a £ 300m CCFF facility.

A spokeswoman confirmed that the loan was withdrawn to maintain liquidity and protect the business, while there was ongoing uncertainty about the duration of the current air travel restrictions.

She added: “This loan gives the business some flexibility in case the situation regarding overseas travel worsens.”

Gatwick Airport, the UK’s second largest airport, cut 600 jobs last year. A two-thirds reduction in passenger numbers resulted in a pre-tax loss of £ 344m in the six months to June.

The airport currently operates only in the North Terminal, with 20 to 30 flights a day last week, serving approximately 1,000 passengers.

Before the pandemic, it was the largest single runway airport in the world. However, last year, passengers dropped by an average of 80% compared to 2019 due to airline shrinkage and flight interruptions. And this month, Norwegian Airlines announced that it would close its long-haul base at Gatwick Airport, making its 1,100 staff redundant.

Mail on Sunday understands that Norway is currently dismantling 35 Boeing 787 Dreamliner transatlantic jets. These jets will be sold or returned to the leasing company. Karen Dee, CEO of the Airport Authority Association, warned last week that the airport would have to be temporarily closed. There is speculation that the UK border could be completely closed soon this week.

Paul Charles, CEO of travel consultancy PC Agency, said restrictions could lead to bankruptcy of some airlines.

Gatwick Airport requested the government to announce a “comprehensive support package for aviation” last night.

“It is important that the infrastructure of key countries such as airports thrive and provide the international connectivity that the UK needs to remain open to trade and business.”

Gatwick Airport Increases Government Borrowing by £ 75m

Source link Gatwick Airport Increases Government Borrowing by £ 75m

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