Birmingham Airport - General Thread

[HPsauce]

The seven controlling councils have granted £18.5 million to BHX to help them through the current Covid crisis.

 

[Ray Finkle]

Birmingham makes the list of entry locations for those who have to quarantine after arriving from 'red-listed' destinations.


Arrivals from 'red-listed' destinations will have to book and pay for a quarantine package costing £1,750 before they travel. This will include the cost of their hotel, transport and testing, and will be available to book via an online platform that went live on February 11 (but quickly went down for maintenance).

The Government will also limit the right of entry to specific locations; Heathrow Airport, Gatwick Airport, London City Airport, Birmingham Airport and Farnborough Airfield.

UK quarantine hotels: how do they work and what do the new rules mean for holidays?

Everything you need to know about the UK hotel quarantine scheme, including how to set it up and what you can expect

www.telegraph.co.uk

 

[andrew.clarkson]

Hi there all, so the 7 Councils that control the airport has finally decided to loan the airport 18 million pounds, because of the current pandemic, thats amazing to where that funding has come from, when Council are in debt, plus they made made a statement last year that they wouldn't give funding, talk about two faced Councils..AndyC

 

[JENNYJET]

Every one knows my opinion on the ownership of the airport so any comments by myself would be negative. One thing about how the councils financed the loan, they may have gone to the money markets and have found a huge wedge at next to zero interest but what they charge BHX for the money is something to be determined or found out! I understand it is to help the airport with running costs or wasted away!

 

[jfy1999]

Not all the money is from the councils, and not all 7 are contributing. The Ontario Teachers pension fund are contributing part of it.

 

[JENNYJET]

Ah so, information trickles out making comments inaccurate, one assumes the controlling body voted the matter through whether or not it was unanimous., the funds have been granted, have they?

 

[Ray Finkle]

I admit that I am in no way an expert in finance so am happy to be corrected but I'm not sure that this is quite as simple as the shareholders just handing over a cheque for £18.5 million.

It seems to be a 'loan facility' aimed at ensuring the airport company meet their legal requirements surrounding current debt agreements and the viability of the company, so it may not actually be used.

Given that Birmingham saw two of it's biggest airlines go bust in a relatively short space of time, companies which may have owed money to the airport, followed by a 91% drop in pax numbers and an unimaginable cut in income I think it was inevitable that shareholder help would be needed at some point. In the grand scheme of things £18.5m doesn't actually seem that much, especially when the airport contributes circa £1.5 billion to the regional economy.

 

[Ray Finkle]

A little bit more info in this article.

£18.5m emergency loan as Birmingham Airport reduced to ghost town

Hundreds of job losses, millions in lost revenue and passenger numbers down by 91% - now Birmingham City Council stepping in with emergency loan offer

www.birminghammail.co.uk

She set out the extreme challenge ahead - with BAHL operating with external debt facilities 'in the form of a £105 million corporate bond, £371 million private placement loan notes, and a bank loan of £25 million.'

The debt agreements include that BAHL must comply with strict covenant tests twice a year, which assure guarantors of its viability. The last two were waived because of the Covid pandemic - but the next is due in June.

The report continues: "BAHL will not be able to comply with the covenant ratios unless passenger volumes and revenues recover quickly."

As a result they will be pressing for a further waiver and have requested shareholder support.

Cabinet is asked to approve a loan facility "on commercial market terms" up to £18.5 million.

 

[JENNYJET]

I thank Sir Raymond for the information that was missing from earlier postings, I am now clearer in my mind and agree that the sum loaned is insufficient but non the less welcome.

 

[IanFarquharson]

I thank Sir Raymond for the information that was missing from earlier postings, I am now clearer in my mind and agree that the sum loaned is insufficient but non the less welcome.

To put this in context Luton Council has just lent Luton Airport over £80m just to allow the airport to pay the interest on its debt !

 

[JENNYJET]

Indeed, context and detail is important when assessing information, I like a comprehensive brief!

 

[IanFarquharson]

Hi there all, so the 7 Councils that control the airport has finally decided to loan the airport 18 million pounds, because of the current pandemic, thats amazing to where that funding has come from, when Council are in debt, plus they made made a statement last year that they wouldn't give funding, talk about two faced Councils..AndyC

Councils can easily raise money but it just increases their debt pile.
If you lived in Manchester your local council tax would be funding an airport in Essex !

 

[HPsauce]

Never believe Councils when they plead poverty!. They all carry a 'war chest' and Birmingham City Council's War Chest is considerable!. As the largest local authority in the UK, they have a huge reserve of funds.

 

[JENNYJET]

People forget that councillors are just volunteering politicians often backed by a national party machine to whom they owe allegiance, not necessarily to the voters of their ward!

 

[Matty_85]

A little bit more info in this article.

£18.5m emergency loan as Birmingham Airport reduced to ghost town

Hundreds of job losses, millions in lost revenue and passenger numbers down by 91% - now Birmingham City Council stepping in with emergency loan offer

www.birminghammail.co.uk

She set out the extreme challenge ahead - with BAHL operating with external debt facilities 'in the form of a £105 million corporate bond, £371 million private placement loan notes, and a bank loan of £25 million.'

The debt agreements include that BAHL must comply with strict covenant tests twice a year, which assure guarantors of its viability. The last two were waived because of the Covid pandemic - but the next is due in June.

The report continues: "BAHL will not be able to comply with the covenant ratios unless passenger volumes and revenues recover quickly."

As a result they will be pressing for a further waiver and have requested shareholder support.

Cabinet is asked to approve a loan facility "on commercial market terms" up to £18.5 million.

I imagine 18.5 million is nothing in the context of an airport like BHX. What seems strange is that BCC are approving this on ‘commercial market terms’. Surely they would lend it on more favourable terms considering the situation faced by the airport & its importance to the city. I’m sure they lent Edgbaston cricket ground 20 million for its redevelopment and that was at a lower rate! Has national government not offered airports a loan facility?

 

[HPsauce]

4 passengers fined £10,000 each for not declaring they had visited a Red List country on arrival at BHX. Yesterday i understand. Not sure where they had accessed a flight from. Presumably had come in from an intermediate airport.

 

[Coathanger16]

4 passengers fined £10,000 each for not declaring they had visited a Red List country on arrival at BHX. Yesterday i understand. Not sure where they had accessed a flight from. Presumably had come in from an intermediate airport.

Noticed the Monday Turkish 787 was back again yesterday. Not sure if it was just cargo or if passengers were onboard too.

 

[HPsauce]

We had few passenger flights yesterday but Turkish a prime candidate

 

[IanFarquharson]

Yes pax in and out

Noticed the Monday Turkish 787 was back again yesterday. Not sure if it was just cargo or if passengers were onboard too.

 

[HPsauce]

Confirmed it was Turkish Istanbul flight. 10 Red List passengers, but only 6 declared their need for quarantine!