Terminal 1 to be shut as T2 takes off says Cornish
MANCHESTER Airport Group’s chief executive says the airport is “moving its front door” to the expanded Terminal 2 , and that the existing T1, is “no longer fit for purpose”.
Cornish said the original terminal site, which is more than 40 years old, and has been expanded and reconfigured extensively over the last few decades, could be demolished and redeveloped as part of the Airport City project, which is running parallel to the new £1bn Transformation Programme announced on Tuesday.
“When we have decanted all the airlines out of Terminal One in 10 years’ time, we have options with regard to what we do with the building, which is coming to the end of its natural life.
“We could keep it for contingency, or we could look at opportunities to expand Airport City and create more jobs and potentially more commercial revenues.”
He said MAG would use its “strong financial position” and the debt market to fund the £1bn redevelopment project.
“All infrastructure companies have got big capital programmes and we are re-profiling and reconfiguring some of our existing capital projects. The financial performance of the group has been very strong over the last two or three years and our cash flows are only going to improve too.
“Clearly at some point we will increase our debt levels slightly – we will remain very conservatively geared. We will not be looking at high level of debt and we will not be raising new equity. We will be funding it from increased cash flows and increasing our debt profile for a relatively short period of time.”
He said MAG’s executive and its shareholders had been discussing for some time the best way to meet the needs of both airlines and passengers looking into the future.
“Airlines, which are investing themselves in new world class aircraft like the A380, want to be operating at modern fit for purpose facilities. Passengers meanwhile are doing everything online, so we had to think about that too in that we want to feature the latest technology for them to be able to check in seamlessly, move through security in five minutes and then shop and relax.”
After planning consent has been secured, the first spade in the ground on the project is expected to be in April 2016.
Phase one will last for three years and will see the size of the T2 building increased by 140% and additional car parking facilities created. The ‘apron’ of the terminal will be expanded too, providing additional parking slots for aircraft.
The new building will be open by 2022 and by 2025 all the new piers and stands will be opened.
Sir Richard Leese, leader of Manchester City Council, which is a major shareholder in M.A.G, said the airport’s transformation plan would boost international trade and inward investment not just in Greater Manchester, but across the North West and north midlands.
“This programme will be a significant boost to the north. As we look to compete on the international stage we need an airport that continues to meet the needs of passengers and airlines.
“I am sure that fewer and fewer people will need to use Heathrow and Gatwick in the future.”
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