BAA to sell Gatwick airport
[September 17th 2008]
Gatwick airport, the second busiest airport in the UK, is now officially for sale as the break up of BAA’s airport monopoly begins.
The Competition Commission’s initial enquiry into BAA last month called for the airport operator to sell two of its London airports, with Gatwick and Stansted the favourites to go. BAA’s owner, Spanish group Ferrovial, has also been disposing of various assets as it tries to refinance debts. The sale of Gatwick is expected to gross at least £2 billion and perhaps up to £3 billion.
"Gatwick has long been an important and valuable part of BAA and the decision to sell was not taken lightly. We believe that the airport's customers, staff and business will benefit from the earliest possible resolution of current uncertainty,” says BAA chief executive, Colin Matthews.
BAA says that it disagrees with the Competition Commission’s report, and intends to fight for Stansted airport as well as Glasgow and Edinburgh airports.
“We will continue to present our case, in respect of the South East airports and those in Scotland. At Stansted, we believe that a change of ownership would interfere with the process of securing planning approval for a second runway, which remains a key feature of Government air transport policy,” Matthews says.
Gatwick’s largest airline, easyJet, has already responded to the proposed sale. “The announcement this morning that BAA has put London Gatwick Airport up for sale is not a surprise, but it is a possible cause for alarm,” the low cost airline says in a press statement.
“Gatwick is a local monopoly and simply selling Gatwick to the highest bidder won’t change that fact. Monopoly providers of nationally-important infrastructure always need to be regulated to prevent irresponsible price gouging,” the statement continues.
Gatwick is the busiest single runway airport in the world, handling 35 million passengers a year. Some 80 airlines fly from the airport to more than 220 destinations. Thanks to its size and location – just 30 minutes by Gatwick Express rail link from central London – Gatwick is sure to attract plenty of bidders. Among those who have already expressed an interest are Manchester Airports Group, the Virgin group, German company Hochtief, and Global Infrastructure Partners, a joint venture between Credit Suisse and General Electric.
Written by: Nick Purdom
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