The Israel Airports Authority Council yesterday unanimously approved financing for the Timna international airport, outside Eilat.
Director Shaul Meridor voted in favor, after his demand for adjustments to the original budget was accepted. He made the demand after it was revealed that independent financing of the new airport by the Airports Authority would result in a NIS 9.45 billion deficit in its budget by 2013. He resigned as the Airports Authority finance committee chairman two weeks ago.
The Airports Authority said that cash flow presented to the finance committee, which met in Meridor's absence, was based on a thorough analysis and projects for which the Airports Authority had already decided there was no operational need. The cash flow projection included financing for a fifth docking bay, which has not yet been discussed, approved, or planned, and a fourth docking bay, which the Airports Authority Council has also not yet approved. Only the fifth docking bay has been budgeted in the cash flow forecast, at a cost of NIS 5.7 billion.
The docking bays will handle a larger number of incoming passengers at the airport. The Airports Authority added that chairman Ovadia Eli told a development committee meeting in July 2011, "Increasing the fourth docking bay would be a strategic mistake."
The Airports Authority said that moving the Eilat Airport to Timna was a national necessity given Eilat Airport's location in the city center and limited capacity. The Timna Airport, to be named for the late Israeli astronaut Ilan Ramon and his son, Assaf, will provide an alternative to Ben Gurion Airport.
Published by Globes [online], Israel business news - www.globes-online.com - on March 12, 2013
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