Julian Dunkerton and Leeds East Airport operator Chris Makin are calling on council leaders to give 'urgent and substantial' consideration to their fresh proposals to buy Gloucestershire Airport, before a binding agreement is made with their chosen bidder.
The partners say their new proposals, submitted to estate agent Savills this week, aim to secure the long-term future of the airport, offering not only benefits to airport businesses and the wider community in keeping it operational, but also a 'substantial financial opportunity' for the councils and taxpayers.
With Cheltenham Borough Council and Gloucester City Council having selected their preferred bidder for the airport last week, rejecting Dunkerton and Makin's first proposal, Mr Makin has raised concerns over the credentials of the as-yet unnamed successful bidder to operate an airport – claiming he has been approached via a third party about helping them run it.
He's also concerned about the bidder's intention to preserve a working airport in the long term, sharing with SoGlos that he's 'learned' the bidder is seeking advice on whether running just 'one flight from the airport each day' constitutes ‘keeping it operational’, potentially with the intention of winding up its operations over the course of an agreed five years, with a view to redeveloping the site.
Both of Dunkerton and Makin's proposals include a legally documented commitment to keep the airport operational for a minimum of 25 years.
As owner and operator of Leeds East Airport, Makin says he's taken it from 'derelict' to having up to 30,000 movements a year since his takeover. He says that using his knowledge and experience, he aims to half the ‘out of control’ costs of running Gloucestershire Airport – one of the UK’s busiest airports with nearly 70,000 movements a year – and make it profitable.
He told SoGlos: ‘They (the councils) are looking to sell it to someone who has no idea how to run an airport.
‘They don’t know how to run it, they’re losing money and they want to offload it. I’ve got the experience and the track record, I want to do the same as I’ve done with Leeds – and I’ve got the backing of the current tenants.’
In a written statement outlining the proposals, the partners say: 'Our objective is to preserve a working airport, protect the businesses and employment that depend upon it, and realise appropriate development value from surplus land to support its long-term future.'
Makin added that he and Dunkerton want to see the airport used for commercial flight for the business community, as well as for people travelling to and from Cheltenham Racecourse.
Both of their proposed options include closing two runways and releasing 'suitable surplus land' for development, with the purpose of 'securing the airport’s future while delivering value to taxpayers'. They state that any runway changes or development would depend on the necessary planning and aviation approvals.
Dunkerton and Makin's option one for Gloucestershire Airport
For their first proposal, they're offering £25 million for the freehold of the entire site, with payment commencing after two years, spread over the following ten years.
In addition, the councils would receive 25 per cent of the uplift on qualifying development land sold in the future, subject to an overall cap of £38.5 million on the combined purchase price and development payments.
Dunkerton and Makin's option two for Gloucestershire Airport
In option two, they're proposing a the creation of a separate limited company, bringing together Julian Dunkerton, Chris Makin and the two owning councils.
No purchase payment would be made at the outset, with a £15 million entitlement being paid when funds become available through development. The councils would then receive 50 per cent of the net proceeds from future development land sales, while Dunkerton and Makin would collectively receive the remaining 50 per cent.
They say the entitlement and land sales would potentially give the councils a combined return of around £44.4 million, before deductions for agreed project costs.
A 'fundamental' condition of the partnership is that Dunkerton and Makin would have exclusive responsibility for the overall management and day-to-day operation of the airport, with the councils having no role or right to intervene as sleeping partners, 'due to their track record'.
The statement said: 'The councils have an opportunity to secure a substantial financial return while protecting an important regional aviation asset for a generation.
'An immediate disposal may address a short-term financial pressure, but it should not come at the expense of a stronger long-term outcome for taxpayers, airport businesses and the wider community. Once an airport is lost, its economic and strategic value is exceptionally difficult to replace.
'Our proposals deserve a full comparison with the preferred bid, taking account of payment timing, security, development participation and the duration and enforceability of the aviation commitment.'
Despite requesting 'urgent' assurances from the councils that their proposals would be considered, Makin says he was told by Savills upon submitting the new bid that the preferred bidder has an exclusivity agreement with the councils over the sale. They wouldn’t, however, tell him how long that agreement will last.
He says the councils have not engaged with him and Dunkerton about their bids 'in any way'.
And added: ‘I believe they have duty of care to share the offers with the people of Gloucestershire, and let them vote on what is best.’
SoGlos has approached Gloucester City Council and Cheltenham Borough Council for comment.
