Luton Airport operator to retain £45m due to council

The operator of London Luton Airport will retain £45m that should have gone to the airport's owners, a Luton Borough Council company

An airport operator will retain £45m of income that should have gone to its owners, the local council.

Luton Rising, a Luton Borough Council company that owns London Luton Airport, has agreed with its operator, London Luton Airport Operations, that it can retain the money over three years.

The agreement will support the airport's recovery from the pandemic.

In a joint statement the companies said it would "provide certainty" for those who rely on the airport for employment.

Alberto Martin, chief executive of London Luton Airport Operations, said the deal "creates reassurance for the thousands of people and the many local businesses who rely on us through the supply chain".

The airport supports 27,000 jobs and £1.8bn in economic activity, Luton Rising said

The operator will "retain £45m over a three-year period from past and future passenger income that would have been due to Luton Rising had passenger numbers not reduced", the statement said.

As part of the airport's recovery from the impacts of coronavirus, the operator has committed to "delivering the real living wage for all its direct employees during 2022, and the reintroduction of a dedicated taxi rank for local Hackney Carriage drivers".

Luton Rising and London Luton Airport Operations Ltd will also work on "ambitious sustainability and net zero strategies", the statement said.

Graham Olver, chief executive of Luton Rising, said: "This agreement sets out how we will continue to work together over the coming decade to build back better, stronger and greener, and support the vital economic and employment recovery that we will want to see in the supply chain and across the region.

"Importantly for Luton residents, this has also been achieved with no direct impact on council tax, and continues to protect the vital investment we make every year in voluntary and community services to improve people's lives."

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