CornwallLive readers are divided over the news that Cornish taxpayers now face a bill of almost £10m a year to keep Newquay Airport running. The figure was revealed during a Cornwall Council meeting examining how the loss-making airport could be made more efficient and commercially successful. now facing a bill of almost £10m a year
The airport is owned by Cornwall Council and managed through a complicated structure involving Cornwall Airport Ltd, Corserv and the council-owned development company Treveth. An independent Steer review made 71 recommendations, including simplifying the management structure, improving financial control, cutting costs and finding new commercial income.
Councillors questioned why the annual subsidy has risen from around £4m to almost £10m, with one describing the recommendations as simply "tinkering around the edges".
This year the airport is expected to record a £9.7m deficit. Councillors also raised concerns over £1.6m owed by collapsed airline Eastern Airways and almost £500,000 spent on marketing. Officials said £3.6m of savings and productivity improvements had already been identified, with plans to find further savings.
Council leaders acknowledged that taxpayers cannot be expected to continue funding such a large deficit indefinitely. The council says it remains committed to keeping the airport open, but wants major cost reductions and new sources of income.
Further scrutiny of the rising subsidy will now take place, with councillors set to examine exactly why the cost to taxpayers has increased so dramatically.
Commenter Steve P suggests: "A few good destinations could change that. Air France to Paris, KLM to Amsterdam, Austrian to Innsbruck. So many good weekend breaks could be had."
Bruce H replies: "The big problem with adding destinations is where the demand is going to come from in a small peripheral regional economy. This is especially a problem during 7-8 long winter months."
Jenni C adds: "I know it's not as simple as just adding more flights, but when destinations only offer fortnightly flights, it doesn't give people much flexibility. I've travelled to lots of places and would love to fly direct from Newquay, but often can't, so I end up using other airports instead. It's such a shame because that's business Newquay is losing."
Seaem asks: "But why should the Cornish taxpayer pay for something they personally may never use?"
Cornishcynic replies: "If Cornwall has any aspiration as a holiday destination, or as a place to locate a business, then it needs an airport. Locals also pay for tourist water infrastructure, roads, toilets, healthcare (when it goes wrong), policing, etc etc etc. I suspect a £10m airport subsidy is a small fraction of the current cost of trying to be a destination."
Marchmont N adds: "We pay for the same reason childless people pay for schools or the young for the care of the elderly: it's called being part of society. The airport will always lose money but it's like saying the A30 runs at a loss; it's a means to an end. The money such infrastructure brings to Cornwall exceeds the cost."
"The airport estimates a GVA of £70m to £72m a year, including the hundreds of jobs it provides, paying wages which are spent on goods and services in the county. You can choose to believe that or not, but those are the figures."
Dis1954 retorts: "Who is to say that this infrastructure brings money into the economy? Cornwall has bigger problems. There seems to be little long term planning, the airport was handed to a council owned subsidiary with no experienced airport operators, and the council's finances lack the discipline you'd expect in a private company. Millions are spent with borrowing ultimately falling on taxpayers. From what I can see, I'm not convinced the council has actually broken even, let alone made a profit, on many of the projects it has backed over the years."
Ju Sincock says: "Cornwall doesn't need four organisations running one airport. It needs one accountable structure, a proper commercial strategy and private sector partners who know how to deliver growth. With four organisations involved, nobody can move quickly enough to fix the problems. Passenger numbers have been falling for two years, not because people have stopped flying, but because they're choosing other regional airports that are more commercially focused. Newquay is simply stuck in committee land, while taxpayers keep picking up the bill."
Bruce H warns: "I agree, but be careful what you wish for. If it's left entirely to a single commercial operator, there's a real risk the airport could simply be closed and the land sold for development. Just look at what happened with Plymouth D
Newquay Airport’s £10m Cost Divides Cornwall Readers