Luton Airport has secured a major £160million loan that will help unlock plans to nearly double its passenger capacity – a move that could create up to 11,000 new jobs and boost the local economy by £1.5 billion a year.
The new financing replaces the airport’s previous £120 million debt deal and gives the operator more flexibility to support both day-to-day operations and long-term developments. Crucially, it will support the roll-out of a government-approved Development Consent Order (DCO) that will allow the airport to increase capacity from 19 million to 32 million passengers annually.
The expansion plans are expected to create thousands of jobs both at the airport and in supporting industries, ranging from construction to hospitality, as well as boosting Luton’s profile as a major gateway to the UK.
Airport bosses say the refinancing – which will provide financial stability for the next four to seven years – is a key step towards delivering the growth plans that were approved earlier this year and could bring significant benefits for the town and surrounding areas.
Richard McCord, Chief Financial Officer at Luton Airport, said: “We are delighted with the outcome of this refinancing, which shows strong support of the debt markets in London Luton Airport. It is an important step to ensure stability of the airport’s capital structure while we look to increase airport capacity through the activation of the DCO.”
Rodrigo Marabini Ruiz, Director of International Subsidiaries at AENA, the world’s largest airport operator and a majority shareholder in the Luton Airport consortium, added: “Our successful public-private partnership with Luton Borough Council has driven exceptional outcomes for Luton and all users of LLA (Luton Airport), including our airline partners. We believe the positive outcome of this refinancing package rightly demonstrates the confidence of the debt market in the underlying business plan, management team and sponsors of London Luton Airport.”
