GIP to buy Edinburgh airport

 

Edinburgh Airport is to be bought by the group that runs Gatwick and London City airports, it was announced today.

Global Infrastructure Partners (GIP) will pay £807.2 million to take over Edinburgh from current operator BAA which was forced to sell off the Scottish airport by the Competition Commission.

GIP said it hoped to complete the deal by the end of May.

GIP is an independent infrastructure fund manager.

Adebayo Ogunlesi, chairman and managing partner of GIP, said: "Edinburgh Airport is a high-quality infrastructure asset. Its acquisition is a landmark deal for GIP.

"We see significant opportunity to apply our tested and successful operational expertise and our knowledge of the global airports sector to develop and enhance the performance of Edinburgh Airport in years to come."

Michael McGhee, the GIP partner leading the acquisition, added: "We plan to work closely with the airlines to improve customer service and quality in a similar fashion to the strategy we are successfully executing at our existing UK airports, London Gatwick and London City.

"We expect to continue to develop Edinburgh into an attractive and efficient capital city gateway by improving the experience of our passengers, business and leisure alike."

GIP took over London City in 2006 and then bought Gatwick from BAA for £1.51 billion in 2009.

Concerned at BAA's monopoly position regarding its ownership of UK airports, the Competition Commission ruled that BAA must sell Gatwick and Stansted and one of either Glasgow or Edinburgh Airports.

BAA is still disputing the Stansted ruling, having opted to keep Glasgow and sell Edinburgh.

Three years go, BAA ran as many as seven UK airports. But following the Edinburgh acquisition, and with Stansted expected eventually to be relinquished, the Spanish-owned company will operate only four - Heathrow, Southampton, Aberdeen and Glasgow.

BAA chief executive Colin Matthews said: "Edinburgh Airport and its team have been part of BAA for a long time and we are proud of its achievements.

"We wish the new owners every success and are confident the airport will continue to flourish.

"BAA will continue to focus on improving passengers' journeys at Heathrow and its other airports."

Mark Lazarowicz, Labour MP for Edinburgh North and Leith, said the takeover could result in "more vigorous competition between Edinburgh and Glasgow airports, with potentially significant benefits to passengers".

But he added: "The fact that GIP already owns Gatwick and London City airports must not lead to any downgrading of services to other London airports.

"Furthermore, as with any large takeover, employees will have concerns about their future under a new employer.

"I hope that GIP will make clear their intentions about retention of staff as soon as possible and will reject any job losses or redundancies."

He also urged the airport's new owners to work with the UK Border Agency to "cut some of the delays which I know can affect travellers arriving on some international flights at theairport".

Scottish Conservative finance spokesman and Lothians MSP Gavin Brown said the deal was "the start of a new chapter in Edinburgh airport's history".

He said: "The airport is vital to the economy of the city and beyond, and can make a significant impact on business and tourism in Scotland.

"I hope that the new owners will place passengers at the heart of their plans and do all they can to create a fantastic passenger experience."

Mark Lazarowicz, Labour MP for Edinburgh North and Leith, said the takeover could result in "more vigorous competition between Edinburgh and Glasgow airports, with potentially significant benefits to passengers".

But he added: "The fact that GIP already owns Gatwick and London City airports must not lead to any downgrading of services to other London airports.

"Furthermore, as with any large takeover, employees will have concerns about their future under a new employer.

"I hope that GIP will make clear their intentions about retention of staff as soon as possible and will reject any job losses or redundancies."

He also urged the airport's new owners to work with the UK Border Agency to "cut some of the delays which I know can affect travellers arriving on some international flights at theairport".

Scottish Conservative finance spokesman and Lothians MSP Gavin Brown said the deal was "the start of a new chapter in Edinburgh airport's history".

He said: "The airport is vital to the economy of the city and beyond, and can make a significant impact on business and tourism in Scotland.

"I hope that the new owners will place passengers at the heart of their plans and do all they can to create a fantastic passenger experience."

Scottish transport minister Keith Brown said: "The Scottish Government welcome the end of the uncertainty that has hung over BAA's Scottish airports since 2008.

"The reported sale price is an illustration of the significance of Edinburgh Airport as a prime transport asset in Scotland and of Global Infrastructure Partners' determination to secure it."

Mr Brown said that Scottish ministers were "committed to boosting direct flights from Scotland and maximising our international connections".

He added: "We welcome GIP to the Scottish aviation scene and look forward to engaging with them over the next few days to discuss their vision for Edinburgh Airport, how they will contribute to the Scottish Government's sustainable economic growth ambitions and what opportunities they wish to bring to Edinburgh Airport."

PA

Sport
Premier League Live
footballLIVE Follow all the Premier League action as it happens
Life and Style
3D printed bump keys can access almost any lock
gadgets + echSoftware needs photo of lock and not much more
News
i100
News
The slice of Prince Charles and Princess Diana's wedding cake and the original box from 29 July 1981
newsPiece of Charles and Diana's wedding cake sold at auction in US
PROMOTED VIDEO
News
James Argent from Towie is missing, police say
peopleTV star had been reported missing
Arts and Entertainment
Gregg Wallace in Summer's Supermarket Secrets
tv All of this year's 15 contestants have now been named
News
i100(and it's got nothing to do with the Great British Bake Off)
Arts and Entertainment
Inside the gallery at Frederick Bremer School in Walthamstow
tvSimon Usborne goes behind the scenes to watch the latest series
Life and Style
A picture taken on January 12, 2011 shows sex shops at the Paris district of Pigalle.
newsThe industry's trade body issued the moratorium on Friday
Arts and Entertainment
Could we see Iain back in the Bake Off tent next week?
tv Contestant teased Newsnight viewers on potential reappearance
Life and Style
Silvia says of her famous creation: 'I never stopped wearing it. Because I like to wear things when they are off the radar'
fashionThe fashion house celebrated fifteen years of the punchy pouch with a weighty tome
News
ebooksAn evocation of the conflict through the eyes of those who lived through it
News
i100Steve Carell selling chicken, Tina Fey selling saving accounts and Steve Colbert selling, um...
Voices
The Ukip leader has consistently refused to be drawn on where he would mount an attempt to secure a parliamentary seat
voicesNigel Farage: Those who predicted we would lose momentum heading into the 2015 election are going to have to think again
Arts and Entertainment
Cara Delevingne made her acting debut in Anna Karenina in 2012
film Cara Delevingne 'in talks' to star in Zoolander sequel
Sport
Mario Balotelli pictured in his Liverpool shirt for the first time
football
News
i100
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Network Engineer (CCNP, CCNA, Linux, OSPF, BGP, Multicast, WAN)

£35000 per annum: Harrington Starr: Network Engineer (CCNP, CCNA, Linux, OSPF,...

DevOps Engineer (Systems Administration, Linux, Shell, Bash)

£50000 per annum: Harrington Starr: DevOps Engineer (Systems Administration, L...

Data Scientist (SQL, PHP, RSPSS, CPLEX, SARS, AI) - London

£60000 - £70000 per annum: Harrington Starr: A prestigious leading professiona...

Financial Technical Consultant (C++, C#, Finance, MSc, PhD)

£50000 per annum: Harrington Starr: Financial Technical Consultant (C++, C#, F...

Day In a Page

Ukraine crisis: The phoney war is over as Russian troops and armour pour across the border

The phoney war is over

Russian troops and armour pour into Ukraine
Potatoes could be off the menu as crop pests threaten UK

Potatoes could be off the menu as crop pests threaten UK

The world’s entire food system is under attack - and Britain is most at risk, according to a new study
Gangnam smile: why the Chinese are flocking to South Korea to buy a new face

Gangnam smile: why the Chinese are flocking to South Korea to buy a new face

Seoul's plastic surgery industry is booming thanks to the popularity of the K-Pop look
From Mozart to Orson Welles: Creative geniuses who peaked too soon

Creative geniuses who peaked too soon

After the death of Sandy Wilson, 90, who wrote his only hit musical in his twenties, John Walsh wonders what it's like to peak too soon and go on to live a life more ordinary
Caught in the crossfire of a cyber Cold War

Caught in the crossfire of a cyber Cold War

Fears are mounting that Vladimir Putin has instructed hackers to target banks like JP Morgan
Salomé's feminine wiles have inspired writers, painters and musicians for 2,000 years

Salomé: A head for seduction

Salomé's feminine wiles have inspired writers, painters and musicians for 2,000 years. Now audiences can meet the Biblical femme fatale in two new stage and screen projects
From Bram Stoker to Stanley Kubrick, the British Library's latest exhibition celebrates all things Gothic

British Library celebrates all things Gothic

Forthcoming exhibition Terror and Wonder: The Gothic Imagination will be the UK's largest ever celebration of Gothic literature
The Hard Rock Café's owners are embroiled in a bitter legal dispute - but is the restaurant chain worth fighting for?

Is the Hard Rock Café worth fighting for?

The restaurant chain's owners are currently embroiled in a bitter legal dispute
Caribbean cuisine is becoming increasingly popular in the UK ... and there's more to it than jerk chicken at carnival

In search of Caribbean soul food

Caribbean cuisine is becoming increasingly popular in the UK ... and there's more to it than jerk chicken at carnival
11 best face powders

11 best face powders

Sweep away shiny skin with our pick of the best pressed and loose powder bases
England vs Norway: Roy Hodgson's hands tied by exploding top flight

Roy Hodgson's hands tied by exploding top flight

Lack of Englishmen at leading Premier League clubs leaves manager hamstrung
Angel Di Maria and Cristiano Ronaldo: A tale of two Manchester United No 7s

Di Maria and Ronaldo: A tale of two Manchester United No 7s

They both inherited the iconic shirt at Old Trafford, but the £59.7m new boy is joining a club in a very different state
Israel-Gaza conflict: No victory for Israel despite weeks of death and devastation

Robert Fisk: No victory for Israel despite weeks of devastation

Palestinians have won: they are still in Gaza, and Hamas is still there
Mary Beard writes character reference for Twitter troll who called her a 'slut'

Unlikely friends: Mary Beard and the troll who called her a ‘filthy old slut’

The Cambridge University classicist even wrote the student a character reference
America’s new apartheid: Prosperous white districts are choosing to break away from black cities and go it alone

America’s new apartheid

Prosperous white districts are choosing to break away from black cities and go it alone