Billionaire hoping to buy 49% share of Teesside Airport and cancel passenger services

Mr Flacks, who is CEO of US-based investment firm Flacks Group which specialises in buying distressed companies, told the Financial Times he was in talks with Tees Valley Combined Authority (TVCA) to buy a minority share in the regional airport.

The authority bought the struggling airport in 2019 for £40m and has provided funding and loans to keep it open and increase passenger numbers.

“They’ve been losing money for years,” he told the FT. “The way to make it profitable is do differently to what they’re doing.”

Mr Flacks appeared on last week’s Sunday Times Rich List as the 141st richest person in the UK, with a personal wealth of £1.213bn.

The airport has been politically valuable to Conservative mayor Ben Houchen, who led its purchase by TVCA. He pledged passenger flights to Tenerife and Malaga would take off from the airport if re-elected this month, despite TVCA having confirmed to The Yorkshire Post that he has “no operational role” at the airport.

Despite retaining a majority shareholding, TVCA would be a “silent partner” in the venture according to Mr Flacks. He has said his plan for the airport is to turn it into a cargo, repair and maintenance hub in a move away from passenger services.

“It’s not that they’re not doing a good job, but running a passenger airport is a hopeless exercise,” he said.

In a statement, Lord Houchen said: “Over recent months we have had expressions of interest from a number of firms wanting to invest in our airport and take a share in the ownership.

“This is a massive vote of confidence and officers have done the diligent thing in assessing these proposals.

“I have always been clear that the public should own Teesside Airport. That is the mandate I have and that is how things should remain.

“So while it shows our ten-year plan is working, and private investors can see great value in the airport, it is not for sale and will remain in public ownership.

“Our plan is working and our airport is staying as it is.”