A major English regional airport bought by Perth businesswoman Ann Gloag less than six months ago is closing with the loss of up to 150 part-time jobs.
Ms Gloag, the co-founder of public transport giant Stagecoach, acquired Manston Airport in Kent through investment vehicle Manston Skyport Ltd for a peppercorn payment of just £1 in late November.
But plans to turn around the facility through the addition of new flights and an increase in cargo throughput failed to materialise, and losses of £10,000 per day forced the closure decision.
A last-ditch plan put forward by staff in a bid to keep the airport open was assessed but rejected on the grounds it was not financially viable.
“Following a meeting with staff this morning, I can confirm the collective consultation has failed to identify a viable alternative that would allow the airport to remain open,” a spokesperson for the airport said yesterday.
“Proposals put forward by staff were carefully considered by the management and owners, but these proposals would still have required ongoing substantial losses be subsidised and therefore were not viable.
“In the absence of other options, the decision has been taken to close the airport on May 15.
“Individual consultation will now take place with all staff members, who will be supported through this process.
“This has been a very difficult time for everyone who works at the airport, and we would like to thank all staff for their professionalism over the last few weeks.”
The airport was placed on the market in March. Despite relatively strong interest, including a reported formal bid to buy the facility last weekend, a deal was never reached.
The decision to close Manston is a significant blow to Ms Gloag , who spoke of her ambitions for the airport late last year.
She had said she intended harnessing her 30 years of experience in the transport industry to “optimise both freight and passenger growth” at the loss-making facility.
Ms Gloag’s first move saw her appoint turnaround specialist and former Southend Airport managing director Alastair Welch to lead the revival plan.
At the time, Mr Welch said that it was vital that new partners were “attracted to do business at Manston” if the airport was to thrive and fulfil its potential.
However, plans to attract new flights to the Kent airstrip were hit late last year following a profits warning by budget carrier Ryanair, with whom discussions had been ongoing.
The airport had also been targeting an increase in cargo volumes, but it is understood that plan fell by the wayside after British Airways made changes to its freight operations.
Local MP Roger Gale hit out at the closure decision, saying he believed the weekend offer for the airport was “viable” and “realistic” but may have fallen on the issue of price.