British Airports Authority to sell Gatwick
I had no idea that an airport authority could sell an airport until I read the headline, "BAA puts London Gatwick airport up for sale," on a Reuters dispatch. "Some in the industry have said Gatwick, one of Europe's busiest airports, serving 35 million passengers a year, could fetch 2 billion to 3 billion pounds ($3.57-$5.35 billion)," according to Reuters. Seems to me like a bargain, considering that Bank of America is paying $50 billion for failing Merrill Lynch and the US government is supporting a bailout of AIG to the tune of $85 million. That may be good business/investment moves -- or they might be worth the provervial paper they're printed on.
But Gatwick Airport, that's a deal. Thirty-five million passengers travel through Gatwick (airport code, LGW) every year. Twenty charter and schuled airlines, including Delta, currently use its two terminals. The British Airports Authority is not selling Gatwick by choice, according to Reuters, which reported, "The sale is a response to Britain's Competition Commission, which last month said in a provisional ruling that BAA must sell three of its seven UK airports, including two of London's Heathrow, Gatwick and Stansted and one of Edinburgh and Glasgow in Scotland.
"BAA said it disagreed with the Competition Commission's analysis, and that it would try to keep all six of its remaining airports after the Gatwick sale, adding that a change of ownership at Stansted to the north of London could interfere with the airport's expansion."
Interested parties reportedly include Richard Branson's Virgin Altlantic as part of a consortium of some sort, a German builder called Hochtief, Frankfurt Airport operator Fraport, Manchester Airports Group and Global Infrastructure Partners, a consortium that already operates London City Airport (LCY).
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