On June 15, Coventry Airport voiced its utmost disappointment to the news of a negative outcome on the long awaited second Public Local Inquiry into its proposed development plans. The Secretary of State for Communities and Local Government and Secretary of State for Transport ('the Secretaries of State') advised the West Midlands airport of its decision to refuse its application to build a new passenger terminal.

Chris Orphanou, Coventry Airport's Managing Director, said: "We are bitterly disappointed with this decision as an airport and because of the impact it will have on the region. Our legal team will now be considering the full implications of the news."

He insists, however, that it will be business as usual at Coventry Airport. Despite this setback, we believe our investment plans will only be delayed slightly. We still have capacity at our existing facility and most importantly, all our airlines remain confident with Coventry Airport. We have already invested more than 5 million pounds as part of the improvement programme and we will continue to move forward with developing other aspects of the business, in particular our airline route network," said Chris Orphanou.

"Thomsonfly operates flights to 13 popular European destinations from Coventry Airport and Wizz Air will be commencing services to Katowice in Poland in July. Furthermore, there is considerable interest from scheduled and charter airlines about operating from Coventry Airport," he said.

A new passenger terminal would make an enormous difference to Coventry Airport and those who use its services. "In our view this decision is extremely short-sighted and not in the best interests of the region. We have established strong working relationships with local businesses, Chambers of Commerce, local communities, tourist bodies and tour operators to promote Coventry and the economic development of the West Midlands. This negative outcome is a stumbling block we intend to overcome."

Coventry Airport was acquired in January 2006 by CAFCO-C a joint venture between Howard Holdings Plc and CIAO (Convergence International Airports Organisation). At the time of the acquisition CAFCO-C pledged to improve the airport to accommodate an anticipated increase in passengers and the company has already invested more than 5 million pounds as part of the improvement programme.

New facilities include an extension to the south apron, the completion of new car parking facilities, resurfacing of part of the runway and general aviation apron, new aerodrome ground lighting, new signage on the runway and taxiways, new ducts for cabling to the length of the runway and ongoing improvements to Air Traffic Control, which alone represent 700,000 pounds of the investment.

A 50 million pounds capital expenditure programme had been finalised to include the construction of a new terminal building (10,000m2) designed to process two million passengers a year, further runway improvements, expanded business aviation facilities, airfield ground lights, NAVAIDS, Air Traffic Control enhancements, freight facilities and a new hotel.