COUNCIL chiefs say talks to potentially go into partnership for the future operation and management of Cornwall Airport Newquay is continuing amid rumours the deal is off.

Phil Mason, the strategic director for sustainable growth and development at Cornwall Council stated the authority will continue to engage and work its preferred partners Adynaton Asset Management LLP and Westcore Europe to “bring the proposed deal to fruition.”

But Newquay and St Austell Labour MP Noah Law and Ben Maguire, the Lib Dem MP for North Cornwall, believe Cornwall Council’s Conservative Cabinet has decided to abandon its efforts to “privatise” the airport.

The MPs have been vocal in their opposition to the proposed deal after condemning the unitary authority for the “flaws in the consultation, lack of transparency, and potential poor value for the taxpayer.”

The deal could see the terminal relocated to the south side at the Aerohub site, three hotels being built, a multi-storey car park and airport operations buildings, which would accommodate new fire control centres.

Cornwall Council is looking at the potential of going into partnership to take the financial pressure off when it comes to running the airport, which is subsidised by the taxpayer to the tune of around £4.8m each year.

A spokesperson for Cornwall Council said: “As agreed at the June Cabinet meeting, Cornwall Council has been working with the preferred partner on the future of the Newquay Airport estate.

“Whilst negotiations have progressed, and the principal terms of a transaction are agreed it has not been possible to bring these all together in a way that addresses some of the technical issues of the deal.

“Papers regarding the deal were due to be published ahead of both Cabinet (January 17) and overview and scrutiny committee (January 16), but those meetings will no longer be discussing those items as we continue the talks.”

Mr Mason added: “We remain completely committed to the development of Cornwall Airport Newquay and the surrounding estate and continue to engage and work with our preferred partner under the terms of our exclusivity agreement in order to bring the proposed deal to fruition.”

Mr Law said: “I welcome the council’s decision to halt this costly and misguided process, which has been draining taxpayers' money on consultancy fees for a deal that was never viable.”

Mr Law, a former financial analyst, criticised the plan, describing it as emblematic of a “naive Tory administration chasing free lunches that don’t exist when, in fact, it's having its trousers pulled down.”

He continued: “Nobody said that running a small but economically vital regional airport would be easy, but thinking that American venture capitalists of all people would pay for the privilege of solving the council’s problems is fanciful.

“As with its other botched privatisations, the council needs to take proper responsibility for our assets and do the hard work to improve their operations before lurching to give away hundreds of acres of prime Cornish land on the cheap.”

Mr Maguire MP who, as the MP for most of the airport’s site, which sits across the constituency boundary, said: “We warmly welcome the news that the sale of Cornwall Airport Newquay to an American property company is now not going ahead. This is absolutely a victory for the residents of Cornwall.

“For months, we have been calling for clarity and openness around this deal, and it’s clear the Conservative-led council has today finally heeded those calls.

“Now, we must ensure the airport continues to be managed in a way that prioritises long-term benefits for Cornwall, rather than be seen as an opportunity for a quick cash grab at the expense of our constituents.”