Agreement reached to unlock huge funding injection to boost more jobs and growth at Teesside Airport

A huge injection of private sector investment into Teesside International Airport has been successfully unlocked.

Agreements with three pivotal airport tenants to expand their growing operations at Teesside are forecast to help create 250 new jobs and unlock £16million of private sector spending – with the potential for more to come.

Now these agreements have been backed with £12.5million of capital funding for taxiways, roads, new power infrastructure and another hangar approved by the Tees Valley Combined Authority Cabinet at a meeting on Friday morning (28 March).

This will unlock the construction of new hangars and provide vital airport infrastructure to allow committed airport firms Willis Lease Finance Corporation, Airbourne Colours and Draken to expand their operations on the back of securing key contracts and more work.

Not only will the new developments generate significant sums in business rates, but they will also boost income for Teesside Airport through rent and landing fees to support the airport’s long-term financial sustainability.

A paper presented to the Cabinet showed the net economic benefits the developments could bring from indirect and direct jobs may exceed £100million.

Tees Valley Mayor Ben Houchen said: “This decision is a real gamechanger in building on some of the brilliant contracts, deals and investments we’ve seen at our airport in the past 12 months – and I’m extremely pleased this plan has received the backing of Cabinet members.

“This unlocks a big package private investment in Teesside Airport which will create hundreds of jobs, will drive economic growth, and will brings huge opportunities for local businesses to capitalise.

“We’ve seen major firms commit to Teesside and this new funding agreement is yet another vote of confidence in both our region and our airport as a prime destination for investment.

“This lays the ground for Willis, Draken and Airbourne Colours to build on their huge plans – and it opens the door for our airport to expand its business operations. Ultimately, this will secure local people more well-paid jobs and secure more business rates for our vital services.”

Draken, a defence and combat training provider for the Ministry of Defence and international military organisations, operates from two hangars at TIAL and recently secured a £173million training contract with the Ministry of Defence.

The firm will see seven more aircraft arriving in the next 18 months to support its expanding L159 aircraft fleet – and Draken plans to establish a Centre of Excellence at Teesside Airport.

Willis Lease Finance Corporation provides maintenance and repair services to major airlines like EasyJet and TUI at Teesside and, following a business review, has determined expanding its hangar capacity is essential for its financial sustainability.

Willis Aviation recently struck two deals with TUI and Jet2 which will see maintenance services on aircraft carried out at Teesside.

Meanwhile, Airbourne Colours is an aircraft painting company serving major airlines like Jet2 and Lufthansa which opened its first Teesside facility in October.

It has successfully filled its newly opened hangar for the next two years – further boosting the airport’s international profile as a maintenance hub, and now it’s seeking an additional hangar to meet growing demand.

Teesside Airport’s infrastructure is outdated and, due to past underinvestment, requires much-needed upgrades to support new developments and strengthen its position in the aviation industry.

Vital improvements including new taxiways, roadways, airside fencing, and power upgrades will now be provided to enable the planned projects by Willis and Draken – enabling them to construct their own facilities.

The funding will also allow the airport to fund the construction and letting of a second hangar to Airbourne Colours.

The direct jobs associated with the new investments are expected to contribute an additional £13million per year to the region’s economy.

The funding announcement following a raft of positive airport developments in the past year. Ryanair flights to Malaga in Spain begin on Monday (31 March) after an absence of more than a decade.

Last year saw FedEx bring expanded cargo operations to Teesside, while the construction of a new hydrogen refuelling station on the airport estate is due to be completed this summer.