URL: https://democracy.northtyneside.gov.uk/ieDecisionDetails.aspx?ID=481

Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Purpose: Consideration of revised governance arrangements at Newcastle International Airport.

Content: Consideration of revised governance arrangements at Newcastle International Airport. Cabinet received a report seeking approval to formally provide the Authority’s consent to the disposal of Company A’s shares at an appropriate meeting of that company.   Cabinet RESOLVED to:    1.      Approve the proposed sale by Company A of part of its shares in the Newcastle International Airport Limited group (NIAL) to Company B on the terms as described in the report;   2.   Authorise the Elected Mayor, as a Director of Newcastle Airport Local Authority Holding Company Limited (NALAHCL) (or in the Elected Mayor’s absence, the Deputy Mayor as the Authority’s alternate Director of NALAHCL), to provide the Authority’s consent to recommendation 1 above at the relevant meeting of NALAHCL; and   3.  Authorise the Head of Law in consultation with the Director of Resources to agree and execute all necessary legal agreements on behalf of the Authority in order to give effect to recommendation 1 above.   Reason for the DECISION:    Company A has informed the 7 local authority shareholders of NIAL (“the LA7”) that it wishes to dispose of a majority of its shareholding in NIAL. Under the terms of the NIAL Shareholders’ Agreement, the LA7 have the right to approve the proposed disposal of shares by Company A. Acting in consultation with the LA7, Company A has managed its sales process in the private market and Company B has been identified as its preferred bidder.     It is considered by the LA7 that Company B would be a suitable fit as a new partner in the ownership of NIAL based on a number of factors, including airport experience, alignment of economic objectives and vision with the LA7, previous background in working within public/private partnerships and acceptance of the new partner of the terms of the existing NIAL Shareholders’ Agreement. In addition, the proposals will also lead to financial benefits for the LA7. It is therefore considered that there is no valid reason for the Authority and the LA7 to withhold their consent to the proposed disposal by Company A of the majority of its shares in NIAL to Company B.   Cabinet was informed that in accordance with the Authority’s Constitution, written approval has been given by the Authority’s Section 151 Officer, the Monitoring Officer and the Chair of Council, that this decision is not subject to call-in and may be implemented immediately. 

Date of Decision: January 12, 2026