Birmingham Airport - General Thread

[Brum X]

What effect will it have?​

The section 114 notice means all new spending most stop immediately, with the exception of statutory services – including safeguarding vulnerable people. Existing commitments and contracts continue to be honoured.

Most councils in this situation have later passed amended budgets involving spending cuts on services, as well as finding other ways to balance the books through sales of property and other assets.

One senior figure in local government suggested Birmingham could be forced to cut spending on non-statutory services, such as public amenities, highways, maintenance, green spaces and grants for community groups. With a stake in Birmingham airport and as the single largest owner of property in the area, extending to 26,000 acres – the most of any UK local authority – the council has plenty of assets to sell if required.

There could also be more pain for households via sharply higher council tax bills: earlier this year Croydon council’s minority Conservative administration increased council tax by 15% to help repair its finances, after it was given special dispensation to raise it above a 4.99% limit.

https://www.theguardian.com/uk-news...ity-council-what-went-wrong-what-happens-next

As BCC's Stake in BHX is an income generator (Recorded a PBIT Profit of £20.2m in 2022), I suspect BCC will want to keep hold of its stake as much as possible. Disposal of land will likely be the biggest generator.

Thanks Woody ;-)

 

[Jon Dempsey]

As BCC's Stake in BHX is an income generator (Recorded a PBIT Profit of £20.2m in 2022), I suspect BCC will want to keep hold of its stake as much as possible. Disposal of land will likely be the biggest generator.

If BCC is forced to sell, and going by what Fraport have done with Greek airports, it could be a positive if the right organisation were to get involved.

 

[Aviador]

If BCC is forced to sell, and going by what Fraport have done with Greek airports, it could be a positive if the right organisation were to get involved.

I have mixed feelings about this. If you take Manchester airport as one example under majority public ownership. The airport authority has grown it's airport infrastructure portfolio and under the banner of MAG, the Manchester Airport Group now owns Bournemouth, East Midlands, London Stansted and Manchester airports. MAG is majority owned (64.5%) by the Manchester and Greater Manchester authorities. Profits from the airport have been reinvested in infrastructure such as the Metrolink which spans much of the Greater Manchester region and has in turn lead to significant inward investment in the region.

The West Yorkshire authorities on the other hand felt they needed to sell the Leeds airport to enable the investment the airport required to offer the region the inward investment they sought. The Leeds airport, under the name of Leeds Bradford Airport was 40% owned by Leeds and Bradford councils with the remaining 20% split between Wakefield and Calderdale authorities. At the time was seen by the majority as a good move as it was thought a private company would bring the investment the airport needed but what has actually happened has been somewhat different.

The airport was sold to Bridgepoint Venture Capital who announced plans to grow the terminal. The company sat on the plans and eventually pulled the plug on expansion. The airport was later sold to Australian investment company AMP who launched plans for a new terminal which was canned due to delays imposed by government. AMP have since opted for a watered down development but provides the same level of growth.

The Leeds airport was originally sold in 2007. 16 Years of indecisiveness and lack of ability to progress the airport has in my view severely impacted the Leeds City Regions ability to compete with neighbouring Manchester with no money available to reinvest in infrastructure projects and a city centre which is slowly being killed off by retailers moving out and the over subscription of student accommodation. As for the airport there, onlookers wait with abated breath in anticipation of work actually commencing 16 years on from when the councils originally sold the airport.

So back to Birmingham? Should Birmingham actually sell its share in Birmingham airport? Well there is every chance a new owner could come in and turn the airport around, but there again, they might not. Around the time of the Leeds airport sale back in 2007, some Leeds councillors described it as selling the city jewels. I would argue they might have been right. So be careful what you wish for but there and again, Birmingham might no longer have a choice in the matter.

#LeedsAirportSale #Metrolink #ManchesterAirportGroup #AMPCapital
#BirminghamAirportForSale #Birmingham #BankruptBirmingham

 

[Nibbles]

BCC own part of airport not the whole. The big question is whether the yearly costs of that ownership - including the costs of investments necessary to keep the airport growing etc - outweighs the profits they get out the back end. I dont know what BHXs accounts look like, but i suspect its unlikely to be a drain on resources.

Then again, selling it would free up a heap of capital to solve a short term problem. But BCCs problems seem to me to be more about year-on-year resource funding, so all it would do is create short term respite.

It would be like me deciding to sell the car so i can pay off a backlog of monthly bills. It might clear the backlog, but i still dont get enough money in each month to pay the bills, so i start building a backlog again, on top of which i also now dont have a car.

The thing BCC need to do is reduce those monthly bills, through efficiencies/productivity, reducing services, etc., combined with effort to increase incomings through council tax (not helped by a Government-imposed limit to the yearly rise without a referendum), investments and associated dividends, etc.. Undoubtedly the airport contributes some of to that, but probably brings a lot back in too.

I think anyone seriously proposing to sell the airport, like the NEC before it, is probably only looking at part of the argument.

 

[IanFarquharson]

The 49% minority shareholding in held between these 7 councils, so Birmingham CC probably owns 7% of the total shares, so in monetary terms quite small.

West Midlands District Councils - Birmingham City Council, Coventry City Council, Dudley Metropolitan Borough Council, Sandwell Metropolitan Borough Council, Solihull Metropolitan Borough Council, Walsall Metropolitan Borough Council and Wolverhampton City Council ("The Districts") are shareholders.ingham CC only own

 

[Matty_85]

Definitely shouldn’t sell! I read somewhere recently it generates circa 20 million for the council.. there are plenty of other land assets they could dispose of too

 

[big vern]

Imagine Labour running the country if they cant even run a city.

 

[nwoody2001]

For context, between 2010/11-2019/20, BCC had its budget and income cut by circa 37% in real terms. Imagine having your income cut by over 1/3rd ! The Tory Govt cutting council budgets by 77.8% is the real crime here!!! And this was in 2019/20... before the likes of Covid and the horrific inflation the UK is currently experiencing.

Its easy for the Tories (who dont run BCC) to shout how they should have done better, but i would struggle to run a household in these conditions, let alone the largest council in western europe!!!!

"Funding reductions have had significant impacts on local authorities in England since 2009/10. Fig 1 below illustrates where cuts to Birmingham City Council’s funding have occurred over the 10 years studied. Government funding has seen a significant decrease, due to austerity policies introduced by successive governments, which have slashed local authority budgets. Birmingham City Council alone had to make austerity cuts of £736 million. Overall, between 2010/2011 and 2019/20, the spending power of the Council decreased by 36.3% in real terms in 2019-20 prices."

Birmingham in Crisis: Understanding the Challenge of Local Authority Budget Cuts and the Effect on Good Financial Management – City-REDI Blog

A blog on the recent financial crisis to hit Birmingham City Council, and how the root of the issues facing this council are a decade in the making.

blog.bham.ac.uk

 

[Ray Finkle]

For context, between 2010/11-2019/20, BCC had its budget and income cut by circa 37% in real terms. Imagine having your income cut by over 1/3rd ! The Tory Govt cutting council budgets by 77.8% is the real crime here!!!

Those numbers really are quite unbelievable!

Whilst I don't think that the Labour led council are blameless in this there are also Tory run councils in the same position. Without knowing all of the details it appears as if it's a combination of poor local leadership under the backdrop of austerity.

I really hope that the situation doesn't descent into each side exchanging insults in some pathetic attempt at political point scoring.

The key thing now is someone stepping in and taking control to get things back on track!

 

[Timberwolf]

What effect will it have?​

The section 114 notice means all new spending most stop immediately, with the exception of statutory services – including safeguarding vulnerable people. Existing commitments and contracts continue to be honoured.

Most councils in this situation have later passed amended budgets involving spending cuts on services, as well as finding other ways to balance the books through sales of property and other assets.

One senior figure in local government suggested Birmingham could be forced to cut spending on non-statutory services, such as public amenities, highways, maintenance, green spaces and grants for community groups. With a stake in Birmingham airport and as the single largest owner of property in the area, extending to 26,000 acres – the most of any UK local authority – the council has plenty of assets to sell if required.

There could also be more pain for households via sharply higher council tax bills: earlier this year Croydon council’s minority Conservative administration increased council tax by 15% to help repair its finances, after it was given special dispensation to raise it above a 4.99% limit.

https://www.theguardian.com/uk-news...ity-council-what-went-wrong-what-happens-next

As BCC's Stake in BHX is an income generator (Recorded a PBIT Profit of £20.2m in 2022), I suspect BCC will want to keep hold of its stake as much as possible. Disposal of land will likely be the biggest generator.

Not sure it will have much immediate effect on BHX.
The only major infrastructure project is the néw immigration hall.This is Govt mandatorary for all UK airports, so will continue.
The only other project is the realigning of further Eurohub stands this winter.They did use an astonishing amount of concrete last winter doing the first phase though.

They have left all the portacabins and basic equipment insitu from last winter to restart this winter.May depend if its already been budgeted for.

 

[A330]

A very nice find. Saudia appear to be doing a lot of things right with their onboard experience.

I noticed this was filmed on a Tuesday, so Saudia and Emirates passengers amongst the many other flights in a very packed departure lounge. I can only imagine what Sunday would be like with Qatar leaving around the same time!

The lack of seating in the departure lounge (if you're not interested in the shops) is evident.

 

[Brum X]

A very nice find. Saudia appear to be doing a lot of things right with their onboard experience.

I noticed this was filmed on a Tuesday, so Saudia and Emirates passengers amongst the many other flights in a very packed departure lounge. I can only imagine what Sunday would be like with Qatar leaving around the same time!

The lack of seating in the departure lounge (if you're not interested in the shops) is evident.

However lots of passengers just assume this is the only area of the terminal with seats. You can walk upto the departure gates at any time and I have found there are always lots of empty seats all along the international pier. This is actually a much nicer part of the airport as well. There was also a small coffee shop or WhSmith located on the international pier the last time I visited in May ?

 

[rollo]

Ditto here Brum X I always wonder up to the far end of the pier for a view across the airport and runway while wifey wonders around the shops in the main terminal and inevitably comes back with her bottle of pink gin. There's always plenty of seats, a coffee/ snacks shop, WH Smith, departures screens and toilets as you say much more peaceful and your only about a 10 minute or so walk from the furthest gate even in the Eurohub when your gate number comes up.

 

[Brum X]

Ditto here Brum X I always wonder up to the far end of the pier for a view across the airport and runway while wifey wonders around the shops in the main terminal and inevitably comes back with her bottle of pink gin. There's always plenty of seats, a coffee/ snacks shop, WH Smith, departures screens and toilets as you say much more peaceful and your only about a 10 minute or so walk from the furthest gate even in the Eurohub when your gate number comes up.

Maybe the airport need to put out regular announcements that can be heard so that they are giving passengers this option. At least it might lessen the number of passengers all squashed in the area near Weatherspoons.

"Please be advised there are more seating areas near to your boarding gate, please follow directions to gate 1-42"

 

[Coathanger16]

Maybe the airport need to put out regular announcements that can be heard so that they are giving passengers this option. At least it might lessen the number of passengers all squashed in the area near Weatherspoons.

"Please be advised there are more seating areas near to your boarding gate, please follow directions to gate 1-42"

Unlikely to happen. The airport will want passengers to stay in the main departures area to spend money in the shops.

Plus for those of us that are aware there is seating elsewhere, it makes those areas quieter and nicer for us.

Do we know yet what will happen to the current security area (in the link building) once the new one opens next year?

 

[rollo]

Maybe the airport need to put out regular announcements that can be heard so that they are giving passengers this option. At least it might lessen the number of passengers all squashed in the area near Weatherspoons.

"Please be advised there are more seating areas near to your boarding gate, please follow directions to gate 1-42"

Definitely not Coathanger16 has it spot on, most people seem to want the shopping, drinking or eating or even all three experiences so leave them to it. Meanwhile leave the rest of us to enjoy the relative quiet, their is always the option of the premium lounges if you want to stump up.

 

[richard winterbourn]

I travel from Bhx frequently and try to give myself plenty of time to negotiate security. So, frequently, i have a lot of time to kill airside.

Generally, i gravitate to the international pier where it is quieter and easier to find a seat. However, it is a pity that they have taken away the seats at the far end where the windows face onto the runway.

The logic of that beats me. Please Bhx management, put them back...

 

[Brum X]

I travel from Bhx frequently and try to give myself plenty of time to negotiate security. So, frequently, i have a lot of time to kill airside.

Generally, i gravitate to the international pier where it is quieter and easier to find a seat. However, it is a pity that they have taken away the seats at the far end where the windows face onto the runway.

The logic of that beats me. Please Bhx management, put them back...

Yes BHX, We demand you put them back.

 

[Ray Finkle]

There was also a small coffee shop or WhSmith located on the international pier the last time I visited in May ?

The coffee shop next to WHS is still there. It used to be Costa but when I was there in August it was having a refit to SOHO Coffe Co. I think it was. Great place to sit and watch the aircraft

I definitely think more could be made of T2, maybe some more prominent signage? I've seen the T1 departure lounge absolutely heaving yet a little stroll across to T2 and we're in All Bar One with probably 50% of the seats available. More expensive than Wetherspoons but well worth it for the peace

 

[A330]

However lots of passengers just assume this is the only area of the terminal with seats. You can walk upto the departure gates at any time and I have found there are always lots of empty seats all along the international pier.

Apologies for going off track on the Saudia thread and thank you for moving the posts.

Absolutely agree with you and Rollo, the international pier is quite a contrast, with the ample room, natural light plus the apron and runaway views! This is the standard all future upgrades at the airport need to meet. I would even argue if the pier were packed, it wouldn't appear so due to the space.

The departure lounge and the arrivals area can feel very congested at peak times.