Biggest ever combined private investment in airport to drive jobs and growth

Proposals for the biggest ever private sector investment in Teesside Airport – creating jobs and boosting economic growth – have been revealed.

Agreements are being progressed with three key airport tenants to each expand their operations, which will create 250 new jobs and unlock £16 million in private sector investment.

To unlock this growth, Tees Valley Combined Authority Cabinet will consider approving £12.5 million in capital funding at its March meeting to fund the construction of new aircraft hangars, attracting new investors and enabling existing firms – Draken, Willis Lease Finance Corporation, and Airbourne Colours – to expand.

The proposed developments will also generate significant sums in business rates alongside income for Teesside Airport through rent and landing fees, supporting the airport’s long-term financial sustainability.

Tees Valley Mayor Ben Houchen said: “This multi-million-pound private investment in Teesside Airport would be a game-changer for our region—creating hundreds of jobs, driving economic growth, and unlocking huge opportunities for local businesses.

“It would be yet another vote of confidence in Teesside as a prime destination for investment – and would demonstrate how we’re delivering on our promise to make our airport a thriving location for jobs and prosperity.”

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 £173m training contract with the Ministry of Defence.

To support its expanding L159 aircraft fleet, with additional aircraft arriving in the next 18 months, Draken plans to establish a Centre of Excellence at Teesside Airport.

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

Airbourne Colours is an aircraft painting company serving major airlines such as Jet2 and Lufthansa.

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

Due to previous underinvestment, Teesside Airport’s infrastructure is outdated and requires upgrades to support new developments and remain competitive.

To enable the planned projects by Willis and Draken, essential improvements such as new taxiways, roadways, airside fencing, and power upgrades are needed.

The TVCA funding would provide infrastructure upgrades for Willis and Draken to enable them to construct their own facilities, along with providing Teesside Airport with the funds to construct a hangar to be let to Airbourne Colours.

The proposed investments follow a string of positive airport announcements in the past 12 months including the return of flights to Malaga in Spain which begin this month, FedEx bringing its cargo operation to Teesside, the development of a new hydrogen refuelling station and the first tenant moving into Business Park South.

Tees Valley Combined Authority Cabinet will meet on March 28 to discuss the proposals.