Gatwick Airport: being sold by BAA
Gatwick, the UKs second busiest airport, is to be sold by BAA for £1.51 bn to investment fund GIP (Global Infrastructure Partners).
GIP, that already have a 75% stake in London City Airport, got involved with the deal when BAA, who control the majority of south east airports in the country, were ordered to sell the airport after an inquiry proved that customers were suffering from a lack of competition between airports.
In June 2009 BAA‘s debt stood at £9.6 bn and most of the proceeds of the Gatwick sale will go towards repaying part of this burgeoning amount.
Commenting upon the sale, BAA’s Chief Executive, Colin Matthews said: "BAA is changing and today's announcement marks a new beginning for both Gatwick and BAA. We wish Gatwick well for the future and are confident that the airport will flourish under new ownership.”
Although the sale of Gatwick is subject to approval in December by the European Union, with plans for GIP to modernize and upgrade Gatwick for business and leisure travellers, the future looks bright for air travel consumers.
Date posted: 23 October 2009
