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UK group states Gatwick interest | UK group states Gatwick interest |
(about 2 hours later) | |
Manchester Airports Group (MAG), the biggest UK-owned airports operator, is interested in buying Gatwick Airport, the BBC has learned. | Manchester Airports Group (MAG), the biggest UK-owned airports operator, is interested in buying Gatwick Airport, the BBC has learned. |
MAG's chief executive told BBC News it would consider buying the airport if current owner BAA was forced to sell. | MAG's chief executive told BBC News it would consider buying the airport if current owner BAA was forced to sell. |
The Competition Commission is concerned that BAA's ownership of London's three biggest airports may not be in the public interest. | The Competition Commission is concerned that BAA's ownership of London's three biggest airports may not be in the public interest. |
It may decide in August to break up Spanish-owned BAA. | It may decide in August to break up Spanish-owned BAA. |
"We'd be interested in any assets that come up, on the premise that we feel we could improve the performance of the group on the back of it, at a price that was sensible," MAG chief executive Geoff Muirhead told Radio 4's Today programme. | "We'd be interested in any assets that come up, on the premise that we feel we could improve the performance of the group on the back of it, at a price that was sensible," MAG chief executive Geoff Muirhead told Radio 4's Today programme. |
Price tag | Price tag |
BAA currently runs Gatwick, Heathrow and Stansted airports near London. | BAA currently runs Gatwick, Heathrow and Stansted airports near London. |
Last month the Competition Commission said BAA "dominates the airports markets in the South East of England and in lowland Scotland". | Last month the Competition Commission said BAA "dominates the airports markets in the South East of England and in lowland Scotland". |
WHAT MAG OWNS Manchester, East Midlands, Bournemouth and Humberside | |
Gatwick is seen as the most likely candidate for sale, and industry experts have put the price-tag in the region of £2bn. | Gatwick is seen as the most likely candidate for sale, and industry experts have put the price-tag in the region of £2bn. |
Mr Muirhead acknowledged the challenge of funding such a purchase in the current economic climate, but said: "I think the price might reflect the difficulties in the financial markets at the moment, in terms of leveraging these types of acquisitions." | Mr Muirhead acknowledged the challenge of funding such a purchase in the current economic climate, but said: "I think the price might reflect the difficulties in the financial markets at the moment, in terms of leveraging these types of acquisitions." |
MAG currently owns Manchester, East Midlands, Bournemouth and Humberside airports, and is the largest operator in the country after BAA. | MAG currently owns Manchester, East Midlands, Bournemouth and Humberside airports, and is the largest operator in the country after BAA. |
The group, privately owned by ten borough councils, handled 28 million passengers last year, with the vast majority travelling through Manchester. | |
However, the outlook for regional airports was called into question following MAG's decision in mid-April to sell a majority stake in Humberside. | However, the outlook for regional airports was called into question following MAG's decision in mid-April to sell a majority stake in Humberside. |
Mr Muirhead said the decision was based on restricted growth opportunities, but that the airport remained profitable. | Mr Muirhead said the decision was based on restricted growth opportunities, but that the airport remained profitable. |
He also criticised British Airways' decision to cancel daily flights between Manchester and New York from October: | He also criticised British Airways' decision to cancel daily flights between Manchester and New York from October: |
"Yes it was a blow, BA unfortunately don't seem able or willing to serve the rest of the UK, they only seem to be interested in the South East." | "Yes it was a blow, BA unfortunately don't seem able or willing to serve the rest of the UK, they only seem to be interested in the South East." |
Passenger boost | Passenger boost |
Problems at Heathrow's newly-opened Terminal 5 have been beneficial to the group. | Problems at Heathrow's newly-opened Terminal 5 have been beneficial to the group. |
Although passenger numbers from Manchester to Heathrow fell by 19% last month, those to other European hubs more than offset the decline. | Although passenger numbers from Manchester to Heathrow fell by 19% last month, those to other European hubs more than offset the decline. |
And retail sales in its terminals have increased by 10% since T5's opening, as a result of higher volumes of international-bound passengers preferring to spend pounds rather than euros. | And retail sales in its terminals have increased by 10% since T5's opening, as a result of higher volumes of international-bound passengers preferring to spend pounds rather than euros. |
Another boost to the airport will be thousands of Manchester United fans travelling to the European Champions League final on 21 May. | Another boost to the airport will be thousands of Manchester United fans travelling to the European Champions League final on 21 May. |
Asked about fears over security, Mr Muirhead said handling the huge volumes of fans "will be relatively easy". | Asked about fears over security, Mr Muirhead said handling the huge volumes of fans "will be relatively easy". |
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