Airport News

Newcastle International Airport has announced that AMP Capital has been chosen as its new partner for a 49% shareholding following a comprehensive selection process.

AMP Capital is a global investment manager present in Australia, New Zealand, Asia, the USA and Europe. The seven North East local authorities – South Tyneside, Newcastle, Sunderland, Gateshead, Northumberland, Durham and North Tyneside – collectively known as LA7 will retain the majority 51% shareholding in the airport.

Councillor Iain Malcolm, leader of South Tyneside Council and Chairman of LA7, said, “The LA7 authorities are delighted that the preferred bidder for the 49% shareholding has been selected. AMP Capital submitted an exceptional proposal and its involvement in running Melbourne and Launceston Airports in Australia will bring valuable airport experience. We’re delighted to have them on board and look forward to working with them to maximise the potential of the Airport."

Newcastle International also announced the completion of its refinancing project that will support the growth of the airport and significantly reduce the level of debt in the business, which in turn will reduce interest payments.

As part of the process, six of the LA7 local authorities (South Tyneside, Newcastle, Sunderland, Gateshead, Northumberland and Durham) will make a further investment in the airport totalling £68 million.

This investment will be at least revenue neutral based upon interest and dividends receivable from the airport business in future years and any future returns paid will reflect the level of investment made by each individual authority.

Malcolm commented, “The completion of the refinancing is great news for the region. The airport is a major asset to the North East, generating millions of pounds for the local economy every year and supporting thousands of jobs. As a result we viewed the further investment by the local authorities as the right thing to do, not just for the Airport, but for the whole region.”