BAA confirms sale of Gatwick Airport

BAA has announced an agreement to sell Gatwick Airport to Global Infrastructure Partners for £1.51 billion.

Some of the proceeds from the sale will be used to repay portions of the airport operator's existing debt.

The agreement follows a ruling from the Competition Commission earlier this year ordering BAA to sell Gatwick and Stansted Airport along with either Edinburgh Airport or Glasgow Airport to reduce its dominance in the UK aviation industry.

Colin Matthews, chief executive of the company, said that it is "proud" of the development of Gatwick and its emergence as "one of the world's leading international airports".

He added: "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.

"BAA will focus on improving Heathrow and our other airports."

Global Infrastructure Partners is an investment fund that already has a majority stake in London City Airport, as well as interests in several other companies.

The sale of Gatwick Airport is set to be finalised in December.

Posted by Teddie, 21 October 2009 13:16

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