Birmingham airport owners reap £82 million dividend

Birmingham airport owners reap £82 million dividendThe owners of Birmingham airport gained £82 million in dividends last year – equivalent to almost £9 for every passenger – after piling on debt, the Sunday Times reported.

A £40.3 million payout was shared between Canadian investment giant Ontario Teachers’ Pension Plan, Australia’s Victorian Funds Management Corporation and staff, while seven neighbouring local authorities split £42.4 million.

The airport ate into its cash reserves and issued £75 million of bonds to almost double net debt to £180.2 million.

Pre-tax profits were up 14% to £18.8 million in the year to the end of March. The airport achieved its third successive year of growth in passenger numbers, up 3.7% to 9.3 million.

The airport sits on the route of the proposed HS2 high speed rail link, and has lobbied the Airports Commission about the case for a second runway.

“The airport continues to strive to serve its region and attract passengers within its catchment area rather than them travelling to the congested southeast,” it said. “Birmingham airport has been recognised as integral to the UK’s long-term aviation model.”

Interim and full-year dividends of £13.4 million were boosted by a £68.8 million special dividend. Ontario and Victorian have 48% of Birmingham, while local authorities own 49%. Revenues hit £113.8 million and £4.7 million was paid in corporation tax.

Birmingham is the UK’s seventh biggest airport served by airlines including easyJet, Flybe, Lufthansa, BMI, Emirates and Turkish Airlines. Monarch recently opened a maintenance hub there.

Sourced from Travel Weekly

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