Blackpool Airport

Mark Menzies Excerpts

Monday 3rd November 2014 Commons Chamber

[Mark Menzies (Fylde) (Con)]

Thank you, Mr Deputy Speaker, for allowing me to hold this Adjournment debate on the future of Blackpool airport, which is an extremely important issue facing my constituency and the Fylde coast. I know that all matters relating to the prosperity of Lancashire are of great interest to you, so it is a great pleasure to see you in the Chair this evening.

Blackpool’s first venture into aviation came more than a century ago, back in 1909, after which the airfield went on to play an important role in the UK’s early aviation history. In fact, the sister of aviation pioneer Amy Johnson lived in Stanley park in Blackpool, which resulted in her often paying a flying visit. It was in the 1930s that commercial flights first began operating from Blackpool, but following the outbreak of the second world war the airfield played a crucial role in the support of the Royal Air Force.

In the post-war years, the airport expanded rapidly, accommodating helicopter flights for gas rig workers and attracting scheduled flights from budget airlines, including Jet2.com, Monarch, Ryanair and smaller operators to Ireland and the Isle of Man.

Hon. Members may know that the airport was owned by Blackpool council until 2004, when it was sold to City Hopper Airports. During this time the airport grew rapidly, with passenger numbers rising from 266,000 in 2004 to more than 560,000 in 2007. In 2008, Balfour Beatty bought a 95% stake in the airport from City Hopper and gave a firm commitment to develop the airport as a commercial going concern.

The ensuing global position, however, saw most airports across the world experience a fall in passenger numbers. This saw Blackpool airport’s passenger numbers decline from just under 600,000 in 2007 to 262,000 last year. During that time the airport lost a number of flights from carriers such as Ryanair, with subsequent financial losses averaging approximately £2 million a year.

Blackpool airport has the ability to operate with extended flight times. During that period of downturn, the main passenger contract with Jet2.com required the airport to remain open for long hours and provide a certain level of safety and operational staff cover. The consequence was that the operational costs of the airport were in excess of £5 million a year, with little chance of recovering that sum from the number of passengers being put through the airport by Jet2.com.

Due to the significant losses being generated at the airport and the complications with the Jet2.com contract, Balfour Beatty announced in August 2014 that it had put the airport up for sale. Following a failure to find a buyer, it was announced that the airport would close on 15 October.

Many of my constituents have expressed to me their concerns that the airport’s closure seemed to proceed at breakneck speed, with insufficient time allowed to find suitable buyers. Although many of us in this House would have liked to see this situation handled differently, I want to concentrate on the next steps to secure the future of Blackpool airport.

Since the airport was put up for sale, I have been in regular contact with Mr Stewart Orrell, the managing director of infrastructure and investments for Balfour Beatty. In our meetings, I have impressed upon him the need for Balfour Beatty to work constructively to find a suitable buyer for the airport and to ensure that staff who have lost their jobs in the process receive the required support to find alternative work in the meantime.

I have also had conversations with potential buyers and investors, my fellow Fylde coast MPs, the Minister for Universities, Science and Cities, and the Under-Secretary of State for Transport, my hon. Friend the Member for Scarborough and Whitby (Mr Goodwill), who is in his place, to discuss ways to make the airport a more viable business.

I want to see what Government assistance might be on offer for those who wish to become involved in the airport’s future. I wrote to the Chancellor of the Exchequer and the Secretary of State for Transport outlining a range of potential measures to save the airport, including a possible reduction in air passenger duty for regional airports. My hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard) and I had a subsequent meeting with the Chancellor, at which we continued our discussions about the airport. The Chancellor listened intently to the points that we made and made clear his commitment to the Fylde coast. He said that he would work with me and my colleagues to find a solution that would increase the likelihood of aviation being retained on the Blackpool airport site.

In recent months, the Chancellor has outlined his vision for a northern powerhouse. If done correctly, that has the potential to make the north of England the engine that drives Britain’s economy once again and an area that competes not just with London, but with the great economic conurbations of Europe. For that to be achieved, connectivity and transport infrastructure will be crucial. Good transport links are at the heart of the proposed northern powerhouse. Although there has been much talk of HS3 and proposed road infrastructure improvements, viable regional airports will also have a vital role to play. It is for that reason that I feel passionately that Blackpool airport should be retained as a commercial airport. With the correct support from Government, it will remain a transport infrastructure asset for Lancashire and the north-west.

In order that that can happen, I have a number of requests to put to the Minister. While some of them will fall within his remit, others may fall within the portfolios of other Ministers. First, I appeal to those who are interested in operating a commercial airport to work with the liquidators, Zolfo Cooper, to ensure that the necessary equipment is retained on site so that the airport can continue to operate. That would include, for example, baggage-handling equipment, firefighting equipment and assets relating to air traffic control. When I spoke to Zolfo Cooper today, it informed me that it will be between six and eight weeks before a liquidation sale will proceed. It is important that interested parties contact the liquidators well before that deadline.

I have made it clear that I do not want Blackpool airport to go the same way as Manston airport in Kent, where there was a fire sale of assets that put the immediate future of the airport in doubt. May I take this opportunity to urge Blackpool Airport Properties Ltd, which is owned by Balfour Beatty, to give assurances that it will maintain the runway, taxiways and terminal buildings until an operator is found? I ask the Minister to work with colleagues across Government, in particular at the Home Office, to ensure that equipment relating to airport security and customs and immigration procedures is available to future operators as soon as they come forward.

A number of aviation businesses, such as flying schools, private jet service companies and helicopter operators, are currently working from the site and are facing uncertainty. It is crucial for the immediate future of the airport that those aviation businesses are retained. One of the largest operators is Bond Offshore Helicopters, which provides logistical support and personnel transport for the Morecombe bay and Irish sea gas rigs. I have been informed that it is temporarily operating out of BAE Systems’ Warton aerodrome, which is also in my constituency, while the future of Blackpool airport is decided. I understand that that is for a three-month period. I would not wish to see it go on any longer than that. I will speak to Bond Offshore Helicopters and BAE Systems to make my feelings clear: the company must remain at Blackpool airport.

Blackpool airport may be eligible to benefit from the regional airport connectivity fund. I would very much like the Government to offer that, should a suitable airline come forward to provide such a service to London.

Another source of Government assistance that I would like Ministers to explore is whether Blackpool airport could be considered for development capital through the regional growth fund. I believe that airport runways are strategic national assets that can only grow in importance, and they should be protected and supported by the Government to ensure their future viability.

Blackpool airport is about 400 acres, and I have been told that a viable airport business on that site would require only 220 acres to maintain an airport service. That leaves well over 100 acres that may be suitable for commercial development, and if done in a carefully planned way that would not only raise capital for the airport’s development, but it may also attract new businesses that seek to use the runway and hangerage facilities. Down the road in Warton we have an enterprise zone that sits adjacent to a runway and has been zoned for aviation, energy, and advanced manufacturing. May I suggest to the Government that the Warton enterprise zone be expanded to include excess Blackpool airport land that may be deemed suitable for commercial development?

Let me make it crystal clear, however, that if any developer is seeking to buy the airport, viewing it as a glorified brownfield site, simply to redevelop the land in its entirety for housing, retail or commercial use, I would find that completely unacceptable and fight it every step of the way. Such an act would be tantamount to economic vandalism, and would betray the hopes of local people and those across Lancashire who have supported the airport through thick and thin. To those developers thinking of going down that path, I say, “Don’t bother, and think again.”

Although the airport may be closed for now, I remain determined to work for its future and to keep the airfield working as it is a proud part of the Lancashire and Fylde economy. I feel the airport has the ability to be a successful commercial venture, and with the correct support and as Member of Parliament for Fylde, I will work with interested parties, including Blackpool and Fylde councils, the Lancashire enterprise partnership and any potential investors, to secure its future. I believe in Blackpool airport, and I ask us all to work together to secure its future because Lancashire deserves it.