Private Sector Involvement Plans Unveiled for Newquay Cornwall International Airport

March 3, 2004

Private Sector Involvement Plans Unveiled for Airport 
Newquay Voice, UK

CORNWALL COUNTY Council has confirmed the terms under
which it will take sole ownership of Newquay Cornwall
International Airport. 
Its first step will be to fast-track plans for the
setting up of an airport company involving the private
sector to generate more income. 
The decision was made in a Friday meeting of the full
council, which heard that negotiations with Restormel
Borough Council were complete to seal the hand over of
control. 
The county executive endorsed the move that dissolves
the current Joint Airport Committee that has
administered the civil air terminal for over a decade.

The joint committee will now have one final meeting on
March 12 to wind up its affairs and the County Council
formally takes over sole ownership of the airport and
its assets from the beginning of the new financial
year on April 1, 2004. 
Restormel Borough Council indicated earlier this year
that it wished to end the current agreement, which
equally shared the ownership of the airport's assets
and running costs. 
The industry shift towards low-cost carriers had
contributed to a shortfall, and the County Council is
now keen to put the airport on a stronger footing for
the future. 
Part of the plan is to set up an airport company,
which will involve the private sector in generating
more commercial income, reducing or removing the
subsidy burden on the local taxpayer. 
County Council leader John Lobb says this is a welcome
development for the airport: "I am sure we will look
back on today's decision as a good one for the Cornish
economy. 
"The joint ownership with Restormel can be proud that
it created a vital transport asset for Cornwall, but
it is now time for us to establish the best possible
structure for the airport to thrive in today's airline
market." 
Newquay Airport, which uses one of the country's
largest military runways at RAF St Mawgan, began civil
air services in the early 1970's. 
Under co-ownership between Restormel and the County
Council from the early 90's there was a major building
programme, which unveiled a new passenger terminal in
1992, subsequently made 70 per cent larger in a £2.3
million expansion opened in 2001. 
The airport now has improved parking and an adjacent
hangar, and offers air services to London Gatwick,
London Stansted, the Isles of Scilly, Bristol and
Southampton. 
Serco manages the airport under contract with a team
of around 60 ground crew, security teams and airport
staff. 
Sally Johnston, Serco operations director aviation
services, said of the decision: "We are delighted that
we will be working with Cornwall County Council to
place the airport on a solid footing for the future. 
"We are as keen as the council to grow the number of
passengers and destinations and look forward to the
benefits that this will bring to the local economy." 
Proposals for the formation of an airline company will
be brought to future meetings of the County Council
Executive. 
This will happen against the backdrop of the
Government's review of the whole St Mawgan site, in
which the RAF must identify future commercial
opportunities. 

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