Airport Cash Situation Worse Than Expected
The account was £170,000 in deficit at the end of the last financial year.
It is a so-called trading account, meaning the airport can’t go into the red and can’t be supported from ratepayers’ money although the Council is allowed to borrow money to cover any shortfall.
It marks a significant worsening in the airport’s financial position and it’s the first time it’s needed a bail out.
At the same point last year, reserves stood at £249,000. That means they’ve spent around £419,000 from the airport ‘savings.’
The airport cost £1.28m to run last year and the figures show it made an operating loss of £168,000.
That’s down from the previous year, when the airport achieved a £50,000, profit even though passenger numbers were lower in 2013.
In March, the Council’s Strategic Development Manager Diana Mompoloki revealed that the project to refurbish the terminal and runways had overspent by almost £600,000.
It’s still unclear whether that bill will be picked up by European funders or the Council ratepayers.
The EU provided the majority of the funding for the original work.
Back in April, councillors increased landing fees by 10% to generate more income for the facility and to rebuild those depleted cash reserves.