Gatwick increased its Government borrowing by £75m over the last week to shore up its finances during the extended travel shutdown
Gatwick Airport increased its Government borrowing by £75million over the last week to shore up its finances during the extended travel shutdown.
According to documents seen by The Mail on Sunday, the latest financing means Gatwick has borrowed £250million under the Bank of England’s Covid Corporate Financing Facility (CCFF) scheme.
Gatwick applied to access the CCFF in August, saying at the time it was a contingency measure and hoped not to touch the money.
Grounded: Gatwick, owned by France’s VINCI Airports and $71billion fund GIP, still has the option of accessing a further £50 million under its £300million CCFF facility
However, the lockdowns and travel restrictions have led to a situation where Gatwick has now accessed a total of £250million – and has 12 months to repay it.
Gatwick, owned by France’s VINCI Airports and $71billion fund GIP, still has the option of accessing a further £50 million under its £300million CCFF facility.
A spokeswoman confirmed the loan had been drawn down ‘to preserve liquidity and protect the business while there is ongoing uncertainty regarding the length of time’ of the current air travel restrictions.
She added: ‘This loan gives the business some flexibility in case the state of affairs regarding international travel deteriorates further.’
Gatwick, Britain’s second biggest airport, cut 600 jobs last year. It posted a £344million pre-tax loss for the six months to June as passenger numbers fell by two-thirds.
The airport is currently operating from just the North Terminal, last week running just 20 to 30 flights a day, for around 1,000 passengers.
Before the pandemic, it was the world’s biggest single-runway airport. But last year, passengers were down 80 per cent on average compared with 2019, as airlines scaled back or suspended flights. And this month, Norwegian Air said it was closing its long-haul base at Gatwick, making 1,100 staff redundant.
The Mail on Sunday understands Norwegian is now dismantling its fleet of 35 Boeing 787 Dreamliner transatlantic jets, which will be sold or returned to leasing firms. Karen Dee, chief executive of the Airport Operators Association, warned last week airports could have to shut temporarily. There is speculation UK borders could be shut completely as soon as this week.
Paul Charles, chief executive of travel consultancy The PC Agency, said the restrictions could lead to several airlines going bust.
Gatwick last night urged the Government to announce ‘a comprehensive support package for aviation’.
It added: ‘It is vital that critical national infrastructure such as airports are able to thrive and provide the international connectivity required to ensure Britain remains open for trade and business.’