Deal for Thompsonfly to switch to Birmingham raised - at Coventry airport inquiry!
18.02.06
Bosses of Thomsonfly and Birmingham Airport almost struck an amazing business deal for the no-frills airline to switch bases - at the planning inquiry into Coventry Airport's expansion!
Thinly veiled negotiations took place as Thomsonfly consultant and Coventry Airport executive chairman Bill Savage took the stand yesterday at the planning inquiry into the application for a new terminal at Coventry airport.
Mr Savage, who also works as a consultant for no-frills airline Thomsonfly, was being cross examined by Birmingham Airport's lawyer, John Steele QC, at Leamington Town Hall. He told the hearing Coventry Airport charges Thomsonfly £5 per customer, compared to charges of between £20 and £23 at Birmingham.
This cost per passenger was denied by Mr Steele, who said the low-cost airline would only be charged between £5 and £6 per passenger if the operations moved from Coventry to Birmingham Airport. With negotiations under way, the two parties then began discussing whether the deal would be extended to present routes operating out of Birmingham.
Mr Savage said: 'If that were the case I would be fairly sure TUI would be pretty excited by that offer!' But as discussions began in earnest before a deal could be struck, government inspector Neil Roberts stopped them. He said: 'I am beginning to think this should be taking place somewhere else. Probably behind closed doors.'
In between discussions, relations between the two parties had remained frosty. Birmingham Airport bosses are concerned that increased operations at Coventry could impact on availability of airspace. Meanwhile, Coventry Airport bosses claimed they were frozen out of negotiations over the availability of air space in the region. The availability of airspace is likely to be a key factor in the out-come of the inquiry, which is due to continue until late May or June this year.
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