Airport expansion could create 250 jobs at Teesside Airport
The plans, which would create 250 new jobs and boost economic growth, involve agreements with three key airport tenants to each expand their operations.
These expansions would ‘unlock Β£16 million worth of private sector investment’.
(Image: Chris Booth)
The Tees Valley Combined Authority Cabinet will consider approving Β£12.5 million in capital funding at its March meeting to fund the construction of new aircraft hangars, attracting new investors and enabling existing firms – Draken, Willis Lease Finance Corporation, and Airbourne Colours – to expand.
The proposed developments will also generate significant sums in business rates alongside income for Teesside Airport through rent and landing fees, supporting the airportβs long-term financial sustainability.
Tees Valley Mayor, Ben Houchen, said: “This multi-million-pound private investment in Teesside Airport would be a game-changer for our region – creating hundreds of jobs, driving economic growth, and unlocking huge opportunities for local businesses.
“It would be yet another vote of confidence in Teesside as a prime destination for investment – and would demonstrate how weβre delivering on our promise to make our airport a thriving location for jobs and prosperity.”
Draken, a defence and combat training provider for the Ministry of Defence and international military organisations, operates from two hangars at TIAL and recently secured a Β£173 million training contract with the Ministry of Defence.
To support its expanding L159 aircraft fleet, with additional aircraft arriving in the next 18 months, Draken plans to establish a Centre of Excellence at Teesside Airport.
Willis Lease Finance Corporation provides maintenance and repair services to major airlines including EasyJet and TUI at Teesside and, following a business review, has determined that expanding its hangar capacity is essential for financial sustainability.
Airbourne Colours is an aircraft painting company serving major airlines such as Jet2 and Lufthansa.
It has successfully filled its newly opened facility at Teesside for the next two years, boosting the airportβs international profile as a maintenance hub, and is seeking an additional hangar to meet growing demand.
Due to previous underinvestment, Teesside Airportβs infrastructure is outdated and requires upgrades to support new developments and remain competitive.
To enable the planned projects by Willis and Draken, essential improvements such as new taxiways, roadways, airside fencing, and power upgrades are needed.
The proposed investments follow a ‘string of positive airport announcements’ in the past 12 months, including the return of flights to Malaga in Spain, FedEx bringing its cargo operation to Teesside, the development of a new hydrogen refuelling station, and the first tenant moving into Business Park South.
The TVCA Cabinet will meet on March 28 to discuss the proposals.