City airport hit by travel cutbacks
LONDON City Airport has seen a 15 per cent fall in passenger numbers so far this year, as its customers, who are typically well-heeled financial executives, tighten their belts.
The airport, located near the ExCeL centre in the Docklands, has suffered as City institutions cut back on business trips and opt for cheaper alternatives like teleconferencing.
The slump contrasts with a bumper year in 2008, when the company paid its shareholders a dividend of £93m and passenger numbers rose 12 per cent.
Accounts filed with Companies House show the airport delivered a profit of £32.2m, nearly double the £15.4m made in 2007.
A spokesperson said the rate of decline in passengers this year had slowed after a steep slide in the first half. The total number of passengers is expected to come to 2.8m compared with 3.3m last year.
She added: “Like all UK airports, we are looking at a slowdown but we have still had a good year thanks to adding a New York service with BA. We are now starting to see passengers travelling again.”
London City Airport plays host to 12 airlines and is favoured by City workers due to its no-queues policy, which means the average time to pass through security is less than two minutes.
Last year the airport spent £50m as it bought new aircraft parking stands. This year it will spend £7m on its departure lounge and security lines. It is owned by Global Infrastructure Partners, which is buying Gatwick from BAA.