BAA opts to sell Edinburgh airport for £500m and keep Glasgow

BAA is putting Edinburgh Airport up for sale with an estimated price tag of about £500m after the Competition Commission forced it to choose between its operations in Glasgow and the Scottish capital.

The operator of six UK airports, including Heathrow and Stansted, decided to sell Edinburgh because it would fetch a higher price than Glasgow.

John Strickland, an aviation analyst at JLS Consulting, said: "Edinburgh airport is performing much better than Glasgow, so it will be easier to sell in a difficult market. Edinburgh is more appealing because it has more high-paying business customers."

"Edinburgh is the jewel in the crown in Scotland," added Douglas McNeill, an analyst at Charles Stanley, who said the airport could potential attract interest from a range of bidders.

These include Global Infrastructure Partners, a fund set up by General Electric and Credit Suisse, which bought Gatwick from BAA in 2009 in the first of a series of disposals ordered by the Competition Commission.

Manchester Airport, which bid unsuccessfully for Gatwick; Borealis Infrastructure, part of the consortium running the High Speed 1 rail link to the Channel Tunnel;, and Australia's Macquarie are among the other potential bidders, Mr McNeill said.

Colin Matthews, BAA's chief executive, said: "Choosing which airport to sell has been a difficult decision. Edinburgh Airport has shown itself to be a strong and resilient asset throughout the economic downturn.

"In an uncertain market, we expect it to be an attractive asset to prospective buyers. Glasgow Airport has great opportunities for future growth and development."

In the first nine months of the year, the number of passengers at Edinburgh jumped by 9.5 per cent to 7.28 million, compared with a 5.7 per cent rise to 5.3 million at Glasgow, according to BAA.

It said it would formally put Edinburgh Airport up for sale in the new year and expected to agree a sale by next summer.

The Competition Commission has also ruled that BAA should sell Stansted although the airport operator is disputing that decision. BAA also challenged the Competition Commission's original decision in 2009 that it should sell either Edinburgh or Glasgow, but the watchdog confirmed that ruling in July.

To complicate matters further, the commission initially said the sale of either Edinburgh or Glasgow should be preceded by the disposal of Stansted. However, this month, it changed the divestment schedule, saying BAA should sell Edinburgh or Glasgow first.

Independent Comment
blog comments powered by Disqus
Career Services

Day In a Page

Feeding a hungry world – or meddling with laws of nature?

Feeding a hungry world – or meddling with laws of nature?

As scientists at Rothamsted's GM trials plead with activists not to sabotage their work, Michael McCarthy visits the battle field
Monkey meat that could be behind the next HIV

Monkey meat that could be behind the next HIV

Deep in Cameroon's rainforests, poachers are killing primates for food. Evan Williams reports from Yokadouma on a practice that could create a pandemic
Catcalls, whistles, groping: just another day for a young woman

Catcalls, whistles, groping: just another day for a young woman

Government urged to take abuse more seriously as London study shows 41 per cent are harassed
Jailing of Maori separatists stirs colonial-era resentment

Jailing of Maori separatists stirs colonial-era resentment

Militant Tuhoe tribe members defiant amid claims race relations had been set back 100 years
Fatal crashes are cyclists' fault, says Boris

Fatal crashes are cyclists' fault, says Boris

Mayor condemned for saying that two-thirds of riders killed on the road were at fault in accidents
Move over Brangelina, this night belongs to Kingston Bagpuize

Move over Brangelina, this night belongs to Kingston Bagpuize

Unlikely community movie beats the stars to get prized Leicester Square premiere
Solved after 33 years? Case of first missing boy shown on milk carton

Solved after 33 years?

Case of first missing boy shown on milk carton
Like mamma used to make: Pizza Pilgrims is proving a word-of mouth sensation

Pizza Pilgrims: Like mamma used to make

A van dispensing purist pizzas is proving a word-of mouth sensation
The supper on its uppers: Why we need to learn to entertain lavishly for less

Supper on its uppers: Entertain lavishly for less

Dinner parties are buckling under the pressures of food snobbery and belt-tightening...
The 10 best summer cookbooks

The 10 best summer cookbooks

From Claudia Roden's The Food of Spain to The Art of Cooking with Vegetables by Alain Passard...
Gorgeous Georgian: Now we can enjoy the cuisine of Russia's fiery neighbour nearer home

Gorgeous Georgian cuisine

The food of Russia's fiery neighbour is among the world's most inventive and original
Fury at Obama over filmmakers' access to Bin Laden kill team

Fury at Obama over filmmakers' access to Bin Laden kill team

White House denies putting politics before national security
Novak Djokovic: Patriot's game

Novak Djokovic: Patriot's game

The world No 1 is fiercely proud to be from Serbia and to be improving his country's profile. And he knows that winning the French Open – and therefore holding all four Slams – will do his cause no harm at all
Rugby league's great drugs cover-up

Rugby league's great drugs cover-up

After Hull's Martin Gleeson failed a drug test last year it sparked an avalanche of lies, complacency and confusion which Robin Scott-Elliot reveals for the first time
Ian Bell: Forget good-looking shots, I want to be known as a tough operator

Ian Bell: View From the Middle

It was nice to play a pressure innings at Lord's on Monday and be recognised for it