Norwich Airport lost £500,000 last year
19.11.07
Norwich Airport made losses of almost £500,000 last year - despite handling a record number of passengers, the Eastern Daily Press reports. A deal struck with budget airline Flybe is being blamed for the loss, with the airport using its controversial £3 airport development tax to bridge the funding gap.
Passenger numbers grew by more than 30% in the year to the end of March, with 772,700 travellers using the airport compared with 583,600 in 2006. But despite the increase in passengers, the airport managed to turn a pre-tax profit of £294,000 in a loss of £491,000.
The newspaper says that the losses are a result of a deal by airport bosses, eager to grow passenger numbers, to lure Flybe to Norwich with a cut-price deal. To make matters worse, increased competition from the budget airline on leisure routes also led to an 18% drop in charter passengers, cutting income further.
Norwich Airport managing director, Richard Jenner, defended the Flybe deal, saying that it had been important to encourage the airline to the airport. He added: 'The deal runs out at the end of March next year and we will be looking to negotiate more favourable terms.'
Mr. Jenner also told the newspaper that the airport was hoping to attract another low cost airline to complement Flybe, which has scrapped routes to Spain and Portugal. He said: 'Stansted and Luton are getting full and airports like Norwich will start to attract other low cost operators. Flybe is now focused on more business routes which offers an opportunity for a leisure focused operator to come here.'
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