A LOBBYING group is asking local councils to reject Newcastle International Airport's loan request.

Newcastle International Airport is seeking a loan from the seven local authorities which own 51 per cent of it.

But Aircraft Noise Action Group has condemned plans.

They said: "People need holidays but we think a loan for this purpose is not an investment in the economic future of the North-East.

"We also think it is environmentally short sighted and irresponsible and that the loan request should be rejected.

"If Newcastle Airport is in serious difficulty, adding to its debt burden will not help, a thorough review of the airport’s finances and purpose would be a better approach to take if it is to survive in any form."

The seven North-East councils are being asked to stump up a sum understood, by the group, to be £5.1 million pounds of taxpayers money.

The airport is also asking the 49 per cent private shareholder, AMP Capital, for a similar sum (£4.9M), say the group.

Aircraft Noise Action Group is calling upon the seven councils to reject the request from Newcastle International Airport for a loan and carry out a thorough review of the airport’s finances and purpose instead.

They also ask for other forms of transport for holiday and leisure purposes with much less environmental impact to be considered, promoted and developed instead.

A spokeswoman for Newcastle International Airport said: "Our current covenant waiver is in place until the end of 2021 and we are well progressed with discussions to agree a further period of waiver until the end of 2022.

"In line with those at other airports, our shareholders are being asked to support this process with the provision of a loan facility that can be drawn by the company in the future if needed."

Speaking on behalf of the LA7 shareholders, a spokesperson said: “The seven local authorities have been asked to approve in principle a loan guarantee to Newcastle International Airport. This is a measured response to show support from all shareholders for the airport to its funders and this would only be called on in the unlikely event of its financial position falling below a certain level. “The aviation industry has been severely impacted by the pandemic but encouragingly, we are already seeing signs of recovery as restrictions ease on international travel.

“Newcastle International Airport is one of the North-East’s most important economic drivers and will play an ongoing crucial role in our region’s recovery from the Covid-19 pandemic.

“Shareholders remain fully supportive of the airport and we will do whatever we can to help it – and the wider region it serves – bounce back from the effects of Covid.”