London Eye loses £8m
The British Airways London Eye, the giant observation wheel on the South Bank, has announced a loss of £8m in its first year of operation.
The loss comes despite higher than expected visitor figures at the London Eye, which employs more than 200 people.
A BA spokeman said: "The advantage to us is the promotional aspect the wheel brings", with the attraction expected to break even "in the medium term".
The figures show that the attraction, valued at £74m, made an operating profit of £5.46m in the first 10 months it was open but interest charges on loans supplied by British Airways and Tussauds Attractions sent the operation to a pre-tax loss of £8m for the year.
The London Eye has planning permission for five years but the company expects it to be extended for a further 20 years.
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