Cornwall Spaceport funding could be cut to cover airport coronavirus losses
£5.6m could be used to cover the expected shortfall
Cornwall Council could be set to cut the funding it has set aside for Cornwall Spaceport to cover losses incurred by Cornwall Airport Newquay.
The council’s Cabinet will next week consider the recommendation to use £5.6million of the £10.2m allocated to the spaceport to cover the expected shortfall at the airport.
In a report to the Cabinet the council says it is fully committed to the spaceport but that an operational airport had to be “first priority”.
The airport has been working with the Department for Transport to see if the Government will cover the shortfall.
However the council has put forward the proposal to use the spaceport funding to cover the losses should the Government not step in.
The report states: “It is important to emphasise that the council remains fully committed to the Spaceport project, but recognises the need to maintain an operational airport as the first priority in order to ensure that the connectivity and the economic benefits for Cornwall are maintained whilst at the same time, still retaining the capability for the airport to host the UK’s first Spaceport in the future.
“In this eventuality, the council would need to explore a number of contingency measures including working with the Spaceport delivery partners and the Department for Transport on the profiling of funding for the project.
“If this is required, then the increase in funding for the airport will be achieved through a reduction in the overall funding of the capital programme which will free up resources that can be used to fund the shortfall at the airport.”
The council’s decision to provide £10.2m to the spaceport made last year was controversial with environmental campaigners saying that it went against the council’s declaration of a climate emergency.
But the council argued that the spaceport could provide an economic boost for Cornwall and create new, highly paid, high skilled jobs.
The council funding was part of an overall £20m funding package which included money provided by the Government and Virgin Orbit which is set to be the first operator at the spaceport.
Spaceport Cornwall, which would be based at Newquay airport, would be used for launching small satellites on horizontal launches.
Details of the planned funding to help the airport come as it was revealed that the airport has had a successful reopening after being forced to close due to the coronavirus lockdown.
The airport revealed that in August it had seen 7,000 passengers pass through its doors.
It also said that the new service to London Heathrow, operated by British Airways, has carried almost 5,000 passengers since it launched in late July.
“We’re really pleased to see the number of passengers travelling through Cornwall Airport Newquay start to rise in August, as we see more and more customers feeling confident to travel by air with the extensive measures we have in place to keep them safe.
“The airport has played a key role in bringing in tourists to Cornwall from across the UK, as well as providing services for Cornish residents wishing to travel outside of Cornwall for holidays or to see family and friends this summer.”
He added: “We’re hoping to see a return of flights between Newquay and Dublin this October, operated by Aer Lingus, and we are still working hard to reinstate the important link to Manchester as soon as possible.”
Pete Downes, managing director at Cornwall Airport Newquay
Cornwall Council’s Cabinet will discuss the report on changes to the capital programme when it meets on Wednesday (Sept 16th).