Teesside International Airport - General Thread

[Stagman]

But then created the Teesside Airport Foundation - a charitable trust that means that there is now no obligation to report detailed financial accounts. Call be a cynic, who knows perhaps Ben Houchen really does have a sense of public responsibility. Or perhaps he’s trying to hide something.

Teesside Airport Foundation: a skeleton in the TVCA’s cupboard

Scott Hunter investigates

northeastbylines.co.uk

Funny how that Detailed Financial Reports are published every year on the Companies House website. Just goes to show where the political allegiance of the author of that website is.

 

[pug]

Funny how that Detailed Financial Reports are published every year on the Companies House website. Just goes to show where the political allegiance of the author of that website is.

Hmmm, it’s losing huge amounts for such a small airport - regardless of what they’re investing into it, it’s operating at a loss. Why then would you create a dormant charitable trust and give it a 25% share in your business?

You can be supportive of the growth of an airport but still ask some pertinent questions that need to be asked. In this case it’s opening it up to future uncertainty.

 

[Stagman]

2020-21 & 2021-22 were affected by covid so obviously there was going to be large losses in them years, due to the dramatic reduction in traffic and resulting reduced incomes. But also the requirement for the airfield to remain operational for medical, instrumental and military operations to continue. Add onto that large amounts of investments. Reading the financials between 2018-19 & 2021-22 if I have read it right I can see over £12m of investment ploughed into the airport.

Financial Year is April- March.
Financial Years / Passengers / Movements / Revenues / Loss/Profit
2023-24 / 143,984 / 12,022 So far April- September
2022-23 / 192,283 / 21,360 /
2021-22 / 83,921 / 20,130 / £7,686,643 / -£11,882,689 (Major Covid impact plus investments)
2020-21 / 14,521 / 11,118 / £4,812,505 / -£13,632,028 (Major Covid impact plus investments)
2019-20 / 139,448 / 16,389 / £7,745,305 / -£1,737,251
2018-19 / 137,689 / 17,062 / £7,557,879 / -£5,725,046 TVCA purchase Feb 2019
2017-18 / 131,745 / 21,848 / £5,656,210 / -£2,620,225
2016-17 / 125,556 / 21,360 / £5,396,735 / -£2,732,790
2010-11 / 236,458 / 21,240 / £5,692,011 / -£957,334

Reading the figures there has been a considerable increase in revenues since 2019-20 for the 2022-23 year.
£5m value was struck off the books in 2018-19 as this related to the housing development land that was purchased in the purchase deal in February 2019.


January - September
Aircraft Movements
2018 13,281
2019 12,969
2022 15,948
2023 16,944

Passengers
2018 105,026
2019 112,774
2022 134,153
2023 178,529

So as can be seen business is on the increase.

 

[pug]

Whilst I appreciate the impact C19 has clearly had, and the investment that has been made into the airport, what happens next year of growth in passengers stagnates? I know there have been hints of more ‘exciting’ developments, but as yet nothing has been forthcoming. Are we to then assume that revenue will remain steady and cost of sales will reduce? Basically, the operating loss being reported is the same as DSA was reporting with around 20% of the passenger throughput and freight carried. I know MME has other on site business like Draken and Willis, but you could argue so does NWI, HUY etc with much smaller reported losses. If the investment is focussed on getting large scale passenger movements then it’s simply unsustainable, even if the business park takes off.

 

[Stagman]

There is fair bit more than what meets the eye at the airport.

Serco International Fire Training Centre
Willis Asset Management
Willis Jet Centre
Draken Europe
AeroSchool
Eden Flight Training
FedEx Express
IAS Medical
Thales Flight Inspection

Ramsdens
Linthorpe at the Airport Pharmacy/ Shop
Fairs Lloyds Travel
Bannantyne Spa
World Duty Free
House of Zana & Rejoy
The Landside Cafe
The Transporter
The Goosepool
Tees Valley Combined Authority Offices

Thai Terminal 1
Goosepool Hotel

Think might be couple more but can't think of off top of my head. So there is a fair bit in rental incomes.
Hangars being built to create more income streams.

There is more growth next year for the airport and also in the coming years. You can already see the shoots of this happening this year.

I don't have any concerns of progress soo far. The airport seeing a gap that could be made useful and did well bringing the terminal refurbishment forward by a few years. This has meant more revenue streams coming online a few years ahead of the business plan. So wasn't concerned about the previous two years of losses, as I was able to see the context of the whole overall picture.

KLM are back to their full timetable, so will be giving a bigger boost to numbers next year with normal service resumed.

Ryanair are struggling with next years schedules. This is due to slower deliveries from Boeing with 10% of the 2024 timetable still yet to be finalised. This will happen once sufficient aircraft are delivered to Ryanair.

 

[Stagman]

They are building a jet engine test blast area in north east corner of the airfield.

23/1978/CPL | Certificate of lawfulness application for a proposed bund. | Teesside International Airport

Home Page of Stockton-on-Tees Borough Council Web site - providing e-Government to the residents of Stockton

www.developmentmanagement.stockton.gov.uk

 

[Stagman]

Education suite has opened up in the terminal.

Airport Aviation Academy Welcomes First Students - Teesside International Airport

A pioneering new aviation skills academy set up to train and teach Teesside University students has now been officially launched. Teesside International Airport has partnered with the University to develop the Teesside Aviation Skills Academy. Part of the airport’s terminal building has been...

www.teessideinternational.com

 

[Stagman]

Another big accolade for the airport.

Teesside Voted Best UK Airport For Leisure Travel At British Travel Awards - Teesside International Airport

Passengers have voted Teesside International Airport as the Best UK Airport for Leisure Travel at the country’s biggest travel awards. The airport picked up the gong at the British Travel Awards – the largest survey of consumer opinion on everything to do with leisure travel. The awards cover...

www.teessideinternational.com

 

[Dale Coalbrook]

Awards are Facebook driven I suspect! Best leisure airport with only 7 ish flights per week?

No de icer this morning meant a 3 hour delay to first KLM outbound..

 

[Stagman]

Highest revenues recorded at over £15m
Loss £2.26m

'Encouraging' results at Teesside Airport as EBITDA losses fall 78%

Latest accounts show revenues doubled to more than £15m during the year

www.gazettelive.co.uk

 

[Jerry]

Highest revenues recorded at over £15m
Loss £2.26m

'Encouraging' results at Teesside Airport as EBITDA losses fall 78%

Latest accounts show revenues doubled to more than £15m during the year

www.gazettelive.co.uk

So not a profit then?

 

[Stagman]

So not a profit then?

In the original 10 year Business Plan made for purchase, profit was expected to occur about year 7/8.
These results are year 4, 2022-23 in that 10 year plan.
This current year 2023-24 is set to bring in even bigger revenues.

The first few years of the 10 year plan was always set to see significant sums being invested.

 

[pug]

In the original 10 year Business Plan made for purchase, profit was expected to occur about year 7/8.
These results are year 4, 2022-23 in that 10 year plan.
This current year 2023-24 is set to bring in even bigger revenues.

The first few years of the 10 year plan was always set to see significant sums being invested.

Note that aviation revenues increase linearly with projected passenger footfall. Next year they are assuming 450,000 passengers will use the airport, which I believe is almost a 100% increase. As yet nothing has been announced which would suggest any growth in passenger traffic next year, in fact as things stand there may be a slight decrease.

Whilst it’s clearly positive that revenues have increased, they will need to continue to do so in order to meet the profit targets they themselves have set out.

 

[Stagman]

For this current year 2023-24 they were expecting 430k passengers, currently stands at 144k. The same period last year was 119k. So for the whole financial year for 2023-24, could be looking somewhere in the region of 220-230k.


I presume this illustration that Houchen put up is from the original business plan and not one of the updated. If it was from one of the updated ones I think would probably be 2021.

So the original Business Plan wouldn't have accounted for a major global disruption event like covid or the fall out after. If it was updated 2021 version then that couldn't have foreseen the disruption caused by engine issues affecting numerous fleets and the delays to new aircraft deliveries which have stunted expansion plans for numerous operators originally envisaged.

So if they expecting Revenues of 19m for this year 23-24 and last year 22-23 was about 2m more than expected. Even with just under half the passengers forecasted for this year, I reckon could still be close to forecasted revenues for this year

 

[Dale Coalbrook]

To make so much profit..sorry..not as much loss! From so few passengers..which always seems to be the way airports make money..it suggests that a lot of ‘up front’ promises,contracts,deals,rents,projected incomings have been included?

If not then these figure are amazing..Leeds right on the edge here so could be a big threat in the coming couple of years?

 

[pug]

For this current year 2023-24 they were expecting 430k passengers, currently stands at 144k. The same period last year was 119k. So for the whole financial year for 2023-24, could be looking somewhere in the region of 220-230k.


I presume this illustration that Houchen put up is from the original business plan and not one of the updated. If it was from one of the updated ones I think would probably be 2021.

So the original Business Plan wouldn't have accounted for a major global disruption event like covid or the fall out after. If it was updated 2021 version then that couldn't have foreseen the disruption caused by engine issues affecting numerous fleets and the delays to new aircraft deliveries which have stunted expansion plans for numerous operators originally envisaged.

So if they expecting Revenues of 19m for this year 23-24 and last year 22-23 was about 2m more than expected. Even with just under half the passengers forecasted for this year, I reckon could still be close to forecasted revenues for this year

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You mention numerous operators envisaged. Ryanair are still growing, Wizzair did not want to return. Both of those are having issues with aircraft delivery or engines.

Covid 19 is no longer an excuse, there has been a significant uptick in leisure holiday bookings as a result of the lock-down and travel restrictions, in fact some travel companies have suggested that may even plateau next year for more normal growth. Business travel has not yet recovered, but it’s also unlikely to in any large scale due to changes in the way people work, that has been declining since before Covid.

Like I say, good to see revenues increasing, but will need to see it increasing (or at least stabilising) for a couple of years at minimum before you can be confident of any sustainability in the current business plan.

 

[Stagman]

You mention numerous operators envisaged. Ryanair are still growing, Wizzair did not want to return. Both of those are having issues with aircraft delivery or engines.

Yes, Ryanair is growing, but not growing as fast as they were expecting due to the late deliveries.

 

[pug]

Yes, Ryanair is growing, but not growing as fast as they were expecting due to the late deliveries.

I’d be pretty confident that now Ryanair are based at NCL, there will be very little impetus to base at MME whether they have the aircraft or not.

 

[Silvercity]

Have to wait and see, Ryanair are quite good and operating at airports where are operators don't look at.

 

[pug]

Have to wait and see, Ryanair are quite good and operating at airports where are operators don't look at.

They are, but there’s an added element of risk (and cost) by adding a base when compared to flights in from other bases. I have absolutely no doubt that MME management are offering very competitive deals and support to attract such an investment, but even with large subsidy you have to remember that MME would be competing with hundreds of other airports across Europe..

I’ve no doubt MME could support a base, just like HUY, NWI, EXT could. But there’s being able to support one and there’s a strategic value in having one. Mme I don’t think has that.