Cheltenham Borough Council and Gloucester City Council as joint shareholders have today confirmed that they have been unable to reach an agreement with Horizon Aero Group on the sale of Gloucestershire Airport.

The councils are disappointed that they were unable to accept the terms from Horizon Aero Group, which had moved significantly away from the original bid prospectus, and recognise that this news will be disappointing for many people who had hoped for immediate certainty about the future of the site.

The councils will continue to maintain close contact with operators and tenants to provide reassurance and keep them updated as work continues on alternative options.

During an extended period of negotiations and due diligence, as joint owners, both councils worked extensively to support the proposed sale, with the clear objective of securing the best possible long term outcome for residents, local businesses and the wider regional economy.

Councillor Rowena Hay, leader at Cheltenham Borough Council said: “It is our duty to deliver best value on the sale of the airport and of course after a long period of due diligence, we are disappointed that we couldn’t reach an agreement to deliver that and proceed with the sale to Horizon Aero Group.

We fully appreciate the concern this will cause, particularly for those employed at the airport who will have worked hard to support the sale process. As we move forward, we are committed to continued engagement with staff, operators, tenants and key stakeholders to discuss the future and reach a positive outcome for Gloucestershire Airport.”

The leader of Gloucester City Council, Councillor Jeremy Hilton, said: “This news is clearly disappointing as the combination of a clear commitment to flying by Horizon, and the continued operation of aviation based businesses, would have provided a strong future for the site. I fully recognise that people hold different views about the potential uses of the site, but our responsibility is to take a measured, evidence-based approach that leads to the right outcome for the long term.”

FAQs

Why has the sale fallen through?
Horizon Group were unable to provide the financial certainty to complete the sale and it’s in the councils’ best interests to deliver the best value from the sale of the asset.

What process was followed?
The marketing and sale process followed legal requirements and full due diligence, with the appointment of BPE and internationally recognised Savills to market and complete the sale.

Will the airport close?
The airport will remain open and day-to-day operations will continue as the councils move through the next stages. It is a priority for the council shareholders to speak to current operators, occupants and stakeholders to help agree a way forward.

Why can’t the councils continue to run the airport?
While both councils have invested in the airport, this has not been sufficient to make the business profitable and the councils must consider the airport in the context of its core role of delivering public services. It is right that both council shareholders look to new ownership for the site who will be better placed to manage the asset.

What will happen next?
Both councils are committed to achieving a positive outcome for the airport and their priority now is to engage with key stakeholders to discuss next steps and find the right outcome.