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Councils split over airport ownership

Jan 31 2007

Solihull Times

 

BIRMINGHAM City Council leader Mike Whitby has said he hopes Birmingham International Airport will be brought back under local authority control.

His comment followed a decision by major shareholders Macquarie Airports Group and Dublin Airport Authority (Aer Rianta) to sell their combined 48.25 per cent stake in BIA. Its book value is £260 million.

The seven West Midlands local authorities own a 49 per cent stake, with the remaining 2.75 per cent held by an employee share trust.

"My view is we should own the airport because it is of strategic relevance and drives growth not just in Birmingham but the region," said Cllr Whitby.

But his opposite number on Solihull Council, Ted Richards, who chairs the West Midlands joint committee of councils, stayed tight-lipped over whether BIA should come back under local authority control.

"The airport plays a pivotal role in the regional economy and our status on the global stage cannot be underestimated," said the council leader.

"That is why it is imperative we work with all parties to ensure the sale proves a success, BIA continues to prosper and we can advance the West Midlands as a world class destination.

"We look forward to talking with potential partners to ensure continued substantial investment and improvement in the airport to support the economic success of the region."

The Green Party in Solihull and Meriden has opposed any move to take the airport into public ownership because it believes that will make expansion easier.

It said it feared Solihull could have its arm twisted by the other West Midlands authorities to make a collective bid for the 48.25 per cent stake in BIA.

Party spokeswoman Pauline Smith said: "It would appear that West Midlands councils want Birmingham Airport to be big for reasons other than need. Is this a macho temptation to say 'we have a massive airport?'"

 

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