Teesside airport £10m bailout while operator departs

T

ThatFragranceGuy

Well-known member
Just read on the gazette that an extra £10m bailout for teesside airport is now needed, and that Esker, formerly known as Stobart Group, have handed back control of the airport & their 25% stake after just 2 years of a 10 year plan. Now all being ran in-house.

Find it very hard to believe houchen didn’t know about any of this during the election period.
 
Why would a company give a 25% stake away for free, what could the possible real reasons be?
Could shareholders sue the company directors for doing such a thing without a reasonable explanation?
 
ThatFragranceGuy said:
Just read on the gazette that an extra £10m bailout for teesside airport is now needed, and that Esker, formerly known as Stobart Group, have handed back control of the airport & their 25% stake after just 2 years of a 10 year plan. Now all being ran in-house.

Find it very hard to believe houchen didn’t know about any of this during the election period.
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now there's a shocker! who would have thought a tory would rip off public money to go to a private enterprise.. leaving the tax payer with nothing in return!
 
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TheLodger said:
Why would a company give a 25% stake away for free, what could the possible real reasons be?
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A pandemic that has cut air travel by 75%, and as a result of this the world has learnt how to use zoom/ teams and as a result of that businesses/ staff have no interest in flying to daft meetings?
 
TheLodger said:
Why would a company give a 25% stake away for free, what could the possible real reasons be?
Could shareholders sue the company directors for doing such a thing without a reasonable explanation?
Click to expand...

If the directors feel that the company won't make money in the short term from the venture, or it's harder to do than first thought, or costing more, then the directors can withdraw. There is a clause to recover money if the airport is sold on.

Shareholders can sue directors, but it has to be based on negligence, or dereliction of duty, or doing things that the directors are not allowed to do under the Articles.
In this case I wouldn't have thought the directors have acted unreasonably, or negligently, and clearly were able to do it. Perhaps the shareholders could have sued for negligence if the deal hadn't been ended.
 
Soutra said:
If the directors feel that the company won't make money in the short term from the venture, or it's harder to do than first thought, or costing more, then the directors can withdraw. There is a clause to recover money if the airport is sold on.

Shareholders can sue directors, but it has to be based on negligence, or dereliction of duty, or doing things that the directors are not allowed to do under the Articles.
In this case I wouldn't have thought the directors have acted unreasonably, or negligently, and clearly were able to do it. Perhaps the shareholders could have sued for negligence if the deal hadn't been ended.
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So for what reasons would they just hand back for free 25% of the airport, remembering that they were not responsible for any losses it makes?
 
TheLodger said:
So for what reasons would they just hand back for free 25% of the airport, remembering that they were not responsible for any losses it makes?
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To get out of the next 8 years of contract if they no longer think it will be profitable for them?

Peel get slated a lot but they did initially pour money into Teesside Airport after the councils struggled with it and got the airport up to record numbers before the recession hit and it never recovered

we’re now back to it being ran internally when we were told that we’d benefit from the operators experience but now both peel and stobart have looked at their options and legged it.
 
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Used it last week.
Fantastic.
Complete opposite of the shyte hole it was before
Breeze through security, decent sitting areas, good choice of drinks and a short stroll to the plane from the building.
Miles better than Newcastle or Leeds than can both become chaotic.

I hope the public use it and it can turn a profit.
 
Popped down to Newquay and at £120 return and a 1.15 hr flight as opposed to sitting in a car for 8 hours....... it's a no brainer for me.
Once Covid lifts fully I'll be all over the Spain flights. Hope they open up to Nice etc as well.
 
hopefully when the european holiday season is in full flow we will have more flights from the airport. It could well end up as a valuable asset to our area.
 
I know people that wanted to profit from building houses on it , pretty small minded thinking imo . If we want to grow surely better transport makes a huge difference.
Maybe I won’t work long term or maybe it will be a huge success but having the right people making huge effort to atleast try and make a difference will surely work in our favour long term wether that’s with the airport or other things in our area .
 
I'm no Houchen fan, but there's no chance he could have predicted a global pandemic that has hammered holidays and the aviation industry. His idea of getting the airport going again was a good one and I hope it succeeds.
 
Middlesbrough123 said:
I know people that wanted to profit from building houses on it , pretty small minded thinking imo . If we want to grow surely better transport makes a huge difference.
Maybe I won’t work long term or maybe it will be a huge success but having the right people making huge effort to atleast try and make a difference will surely work in our favour long term wether that’s with the airport or other things in our area .
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Who are the right people if the council couldn’t make it work in public ownership and two experienced operators have decided it’s unsustainable and done one?
 
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