Council hits back at ‘£300m’ airport bill ‘speculative’

Media reports last week had suggested that Luton Borough Council could have to shell out as much as £300 million in severance payments if they wish to take advantage of a ‘break’ clause to end a 30 year contract with operating company London Luton Airport Operations Limited (LLAOL).

But Steve Heapey, lead officer of airport owners London Luton Airport Limited, said that any such compensation talk is ‘speculative’.

Mr Heapey, who is employed by Luton Borough Council, said: “Through our consultation launched on Monday we seek and welcome comments, questions and feedback on our proposal to grow London Luton Airport and the benefits that this will bring to Luton and the region.

“We will consider comments from the existing operator, alongside those of other interested parties.

“Any talk of termination compensation is both speculative and premature.”

LLAOL had issued a warning last week that airport owners would have to stump up a “very substantial” amount in severance payments if they break the contract.

They also raised a number of questions over the feasibility of the project, which would see an estimated 6,000 new jobs created.

Their statement questioned whether airlines would have to foot the bill for expansion should forecasts for 18 million passengers passing through the terminal be missed and what level of passenger congestion would be acceptable as “only a small amount of new terminal building is planned”.

A consultation on the proposals comes to Dunstable Leisure Centre, in Court Drive, today from 2pm until 8pm.

For more information on the project and the consultation, log onto www.futureluton.co.uk.