BAA has agreed the sale of Gatwick Airport in a deal worth £1.51bn.
The airport will be sold to Global Infrastructure Partners, the owner of City Airport, BAA said.
In March, the Competition Commission ruled that the company, which owns seven UK airports, would have to sell Gatwick within two years.
The Commission also ordered BAA, which is owned by Spain’s Ferrovial, to sell Stansted and either Glasgow or Edinburgh because of concerns over competition.
BAA is appealing at the Competition Appeal Tribunal against the decision which forces them to sell off some of their other airports.
The company said proceeds from the sale will be used primarily to repay part of its debt, which stood at £9.6bn at the end of June.
BAA chief executive Colin Matthews described the deal as a “new beginning” for the firm.
“BAA is changing and today’s announcement marks a new beginning for both Gatwick and BAA,” he said.
“We wish Gatwick well for the future and are confident that the airport will flourish under new ownership.”
The sale is subject to EU merger regulation clearance and is due to be completed in December.
Sky’s City editor Mark Kleinman said GIP planned to continue with a major investment programme already under way at Gatwick.
Yayy 😀
By: Manston Airport - 22nd October 2009 at 00:00
Its stupid that they have to get permisson of the sale from the EU first 😡
ATB
James
By: Arabella-Cox - 21st October 2009 at 18:22
Good news for all! 😀
By: zoot horn rollo - 21st October 2009 at 16:21
I just know you are not talking about competition between two Scottish airports. :p
Is that competition between Glasgow A and Glasgow B airports..?
By: Bmused55 - 21st October 2009 at 15:14
Not necessarily 😉
By: Bmused55 - 21st October 2009 at 12:40
No, its because of competition laws. The Ombudsman found that BAA had a monopoly on UK Airports. With BAA owning all of Britains major airports, they were free to inflate fees to as high as they see fit knowing that the airlines have no choice.
It has also given BAA the ability to force airlines to fly where they want them to fly from.
I know of a few cases where an airline wanted to fly to Airport X, BAA suggested Airport Y and offered cheaper fees as an incentive. Said airlines then either scrap their plans altogether or accept Airport Y.
By forcing BAA to sell some of their airports, it will encourage competition.
I expect flights from Gatwick to drop in price once the new owner drops the landing and handling fees to compete with Heathrow.
By: Nashio966 - 21st October 2009 at 10:51
erm?
because they’re a big company they have to sell some of their airports? :confused:
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October 21, 2009 at 10:47 am