Airport Cash Situation Worse Than Expected

airport may 2015The Council’s latest accounts show how serious the cash situation is at St Mary’s Airport.

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.

3 Responses to Airport Cash Situation Worse Than Expected

  1. Mark Prebble July 11, 2015 at 2:32 pm

    You say political leadership and I say but we’re all independent aren’t we.

    I have to agree with you and suggest that whilst the divide and rule policy promoted by the previous administration and continued by the current on is accepted as a norm by Councillors and those they represent, there will remain a political void within this community and with it a lack of credible leadership.

  2. High Lanes Drifter July 11, 2015 at 9:33 am

    I appreciate your tongue was firmly in your cheek but it really wasn’t a surprise, nowadays it is just about the norm.
    The council is in need of credible political leadership and the lady and her chosen cohort are just not up to the task.

  3. meme July 7, 2015 at 4:34 pm

    What a surprise !!!