London Gatwick Airport releases is quarterly information package to secured creditors – March 2021

London Gatwick Airport has released its quarterly information package to secured creditors this week which details how the airport believes traffic over the 6-months to end September 2021 is expected to be materially impacted by restrictions to travel as a result of Covid-19. Traffic forecasts have been set at around 8% of 2019 levels for Q2 2021 at which point passengers start to progressively build back to 50% of 2019 levels for Q3. This takes account BA’s recent decision to consolidate its short-haul flying programme at Heathrow until October 2021.

In response to this low level of traffic, Gatwick has continued to take significant steps to reduce its operating costs and protect the business. To minimise its operational footprint and therefore operating costs, Gatwick will continue to operate from just the North Terminal until at least July, and has concentrated its operations from one pier whilst traffic remains at very low levels. In terms of government support, £8m was received in April relating to the Covid-19 airport and ground operations support package. The continuation of the government job support scheme until the end of September ensures the preservation of jobs through this low demand environment, ahead of the anticipated rebound of demand and operational activity from the summer. Separately, Gatwick has a comprehensive operational readiness plan to ensure it can meet this increased activity and has worked closely with its key airline partners on different operational scenarios. There is also a continued focus on health and safety for both passengers and staff with workplace testing established for employees as well as testing facilities on airport for passengers.

Interest received and new proceeds The Gatwick group is downstreaming £370m of new proceeds into the Senior Borrower Group to support liquidity and reduce leverage. New Permitted Financial Indebtedness: Class A bond Issue On 15th April, Gatwick issued a £300m 9-year class A bond with a coupon of 2.5%. The net proceeds were used to prepay Gatwick’s £300m Term Loan that was issued in April 2020 as part of our proactive debt maturity management.

Any committed but undrawn Permitted Financial Indebtedness The Covid Commercial Financing Facility (CCFF) scheme is now closed and therefore no "committed but undrawn amounts” are reflected in this liquidity statement. Prior to the scheme closing, on 19th March, Gatwick sold £25m of new commercial paper into the CCFF scheme (reflected in the cash at start of the period), and now has £275m of CCFF debt outstanding of which the full amount matures in  March 2022.

Full report.....

More top stories you might be interested in.....

Follow this site here.