A £32million cash injection as part of a major re-financing deal has been announced to help deliver new routes and "accelerate growth" at Southend Airport.
The owner’s of the airport, Esken, have been embroiled in a row over the repayment of a £125million loan and is facing legal action from US asset management giant the Carlyle Group.
The group has claimed Esken – which put the airport up for sale in June 2023 – is “not in a position to support the airport’s recovery” and that Carlyle is “committed to the future of the airport”.
Yesterday, it was announced that a deal could be agreed to see Esken give up a large part of its stake in Southend Airport and become a minority owner.
Esken said that it had “negotiated a recapitalisation proposal with Carlyle”, which would serve “as a solution to the dispute.”
Esken now has until March 4 to decide whether it wants to accept the solution.
However, the deal would see £32million of new funding released to “secure the future growth of the airport”.
The news comes as the airport bosses revealed passenger numbers have doubled year-on-year and the 12 routes now on offer have proved hugely successful.
John Upton, CEO of Southend Airport, said: “This is great news for everyone connected with London Southend Airport – for our people, passengers, airline partners, and communities.
“The commitment to our future delivers both certainty and stability and will enable us to accelerate our growth plans with their considerable investment capability and operational expertise.”
Mr Upton added: “With a fast-growing population of approaching eight million within an hour, and with other London airports facing a capacity cliff edge, we are ideally placed to serve those airlines looking to grow their operations in the London market.
“We are also already seeing our passenger volumes double year-on-year as we bring on new destinations with easyJet, Aeroitalia and other airlines.
“Following this transaction, we expect to further increase the pace of our growth.
“As we continue to grow, more and more passengers are also taking advantage of our frequent and fast train services to and from London.
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