Cornwall Council considers passenger levy as Newquay airport faces financial pressure
£5.8 million support agreed while exploring revenue options
Financial viability for Newquay Airport continues to be a challenge, and Cornwall councillors have agreed to support its operations with over £5.8 million for the upcoming year, while considering a passenger levy to boost income.
The airport previously introduced the Airport Development Fee (ADF), a £5 charge for departing passengers over 16, which was scrapped in March 2016 to increase passenger numbers and attract new airlines.
Cornwall Council meetings this week addressed ongoing financial difficulties, exacerbated by the collapse of Eastern Airways and the cancellation of the Public Service Obligation (PSO) route to London Gatwick.
Corserv, the council's company overseeing the airport, will unveil a transformation plan later this year, which may include innovative revenue streams such as drones, defense contracts, and expanded Spaceport Cornwall offerings.
Corserv’s Chief Executive Neil Edmond informed the finance scrutiny committee that a passenger volume exceeding one million annually is necessary to break even—a challenging target given the airport's location.
The committee acknowledged the need for subsidies for at least the next few years, expressing hope for a gradual reduction.
Cllr Rowland O’Connor highlighted daily operational financial pressures and raised concerns about deferred capital maintenance due to safety implications.
Recommendations to the cabinet include an urgent review of reintroducing a passenger levy to maximize income potential.
Cllr Leigh Frost stated the cabinet would consider the proposal, while Cllr Martyn Alvey expressed caution based on past discussions that halted reconsideration of the levy.
Given the airport's strategic importance and financial sustainability, Cornwall Council’s decisions may shape its future trajectory and influence passenger and operational impacts.