Newcastle Airport settles with former boss John Parkin

Oct 21 2008 By Paul James

NEWCASTLE Airport and its former chief executive have reached an out-of-court settlement in their £6m High Court case, The Journal can reveal.

The case was due to be heard tomorrow but has been called off after the two parties reached agreement today.

It centred around a financial package worth £8.5m, £6m of which was paid to Mr Parkin before he resigned from his post last May and the remainder to former finance director Lars Friis, who died in 2006

Mr Parkin was suspended in March last year, three months after a major re-financing deal which released £80m to the five Tyne and Wear councils and Northumberland and Durham county councils, which between them have 51% of the airport's shares.

Mr Parkin, who went on to take charge of Leeds Bradford Airport, had previously insisted he would clear his name at court.

The High Court confirmed the case has been settled and removed from its listings. Mr Parkin’s spokesman offered no comment to The Journal.

A Newcastle Airport statement said: “The trial due to begin on October 22, 2008 will not now take place. Newcastle International Airport Limited, Mr Parkin and Mrs Friis have reached agreement as to terms of settlement of their dispute.

“The terms of their agreement will be subject to a court order to be made in the next few days and are confidential. No further press release or comment will be made by any of the parties regarding the dispute or the settlement.