Sutton Harbour Group has announced plans to cease the operation of Plymouth City Airport by the end of 2011.
Plymouth City Airport has been loss making for a lengthy period of time and the SHG board has concluded there is no realistic prospect of trade improving in the near future.
Plymouth City Airport Limited, a wholly owned subsidiary of the Company, holds a 150 year lease agreement with Plymouth City Council for the airport (143 years unexpired at a peppercorn rent).
The company will retain the lease following the closure of the airport, with a possible view to a sale to allow operations to continue.
SHG will now focus on waterfront regeneration and developing new opportunities closely related to its core marine and regeneration activities.
In an interview with the BBC Nigel Godefroy, chief executive of the Sutton Harbour Group, said: “Plymouth City Airport, like many regional airports in the current environment, is unviable as a commercial enterprise.
“This has been an incredibly difficult decision given the efforts by so many, including our own staff, to give the airport a future.
“We have always fought for Plymouth’s air links and sought to do our best for the city and its people, our employees and shareholders, but the usage of the airport simply does not support the high cost of operation.”