Agreements reached with Teesside Airport tenants to expand
Agreements have been reached with three main airport tenants to expand operations at the airport.
This is forecast to unlock £16m of private sector spending.
The agreements have been secured alongside £12.5m of capital funding from the Tees Valley Combined Authority for roads, taxiways, power infrastructure, and a new hangar.
This will allow for the construction of new hangars and provide essential airport infrastructure for Willis Lease Finance Corporation, Airbourne Colours, and Draken to expand their operations after securing key contracts.
These developments are expected to generate significant sums in business rates and increase income for Teesside Airport through rent and landing fees.
A paper presented to the Tees Valley Combined Authority Cabinet showed the net economic benefits the developments could bring from indirect and direct jobs may exceed £100m.
Tees Valley Mayor Ben Houchen said: “This decision is a real gamechanger in building on some of the brilliant contracts, deals, and investments we’ve seen at our airport in the past 12 months – and I’m extremely pleased this plan has received the backing of Cabinet members.
“This unlocks a big package private investment in Teesside Airport which will create hundreds of jobs, will drive economic growth, and will bring huge opportunities for local businesses to capitalise.
“We’ve seen major firms commit to Teesside and this new funding agreement is yet another vote of confidence in both our region and our airport as a prime destination for investment.”
Draken, a defence and combat training provider for the Ministry of Defence and international military organisations, operates from two hangars at Teesside International Airport and recently secured a £173m training contract with the Ministry of Defence.
The firm will see seven more aircraft arriving in the next 18 months to support its expanding L159 aircraft fleet, and Draken plans to establish a Centre of Excellence at Teesside Airport.
Willis Lease Finance Corporation, which provides maintenance and repair services to major airlines like EasyJet and TUI, has determined that expanding its hangar capacity is essential for its financial sustainability.
Willis Aviation recently struck two deals with TUI and Jet2, which will see maintenance services on aircraft being carried out at Teesside.
Airbourne Colours, an aircraft painting company serving major airlines like Jet2 and Lufthansa, opened its first Teesside facility in October.
It has successfully filled its newly opened hangar for the next two years and is now seeking an additional hangar to meet growing demand.
Teesside Airport’s infrastructure is outdated and requires much-needed upgrades to support new developments and strengthen its position in the aviation industry.
Vital improvements, including new taxiways, roadways, airside fencing, and power upgrades, will now be provided to enable the planned projects by Willis and Draken, enabling them to construct their facilities.
The funding will also allow the airport to fund the construction and letting of a second hangar to Airbourne Colours.
The direct jobs associated with the new investments are expected to contribute an additional £13m per year to the region’s economy.
The funding announcement follows a raft of positive airport developments in the past year.
Ryanair flights to Malaga in Spain begin on Monday (31 March) after an absence of more than a decade.
Last year saw FedEx bring expanded cargo operations to Teesside, while the construction of a new hydrogen refuelling station on the airport estate is due to be completed this summer.