£32m For Airport

PLANS to boost Southend Airport’s growth could see the business benefit from a £32million cash injection.

Esken, the proprietor of Southend Airport, has unveiled the funding proposals as part of a substantial refinancing agreement that will introduce new routes.

This financial infusion arrives amidst a dispute over the repayment of a £125 million loan, prompting legal action from the Carlyle Group, a US asset management firm. Carlyle alleged that Esken, which listed the airport for sale in June 2023, lacked the capacity to support the airport’s recovery, while reiterating its commitment to its future.

A potential resolution emerges in the form of a recapitalisation proposal, potentially involving Esken reducing a significant portion of its stake in Southend Airport, transitioning to a minority ownership position, and offering a solution to the ongoing dispute.

Should the deal proceed, it would entail the release of £32 million in new funding aimed at ensuring the airport’s future growth.

John Upton, CEO of Southend Airport, expressed enthusiasm over the news.

He said: “With a rapidly expanding population of nearly eight million within an hour’s reach and given the capacity constraints facing other London airports, we are strategically positioned to cater to airlines seeking to expand their presence in the London market.

“We are already witnessing a doubling of our passenger volumes year-on-year as we introduce new destinations with partners such as easyJet, Aeroitalia, and others. Following this transaction, we anticipate accelerating the momentum of our growth.

“As our operations expand, an increasing number of passengers are availing themselves of our convenient and swift train services to and from London.”

This development aligns with the announcement by airport officials that passenger numbers have doubled year-on-year, with the existing 12 routes experiencing notable success.

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