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London airport sold to US group | |
(about 1 hour later) | |
London City Airport is to be sold to a consortium led by US insurer AIG for an undisclosed sum. | |
The Docklands airport, opened in 1987, was put up for sale by its Irish owner Dermot Desmond in May, with reports suggesting it could be sold for £750m. | |
GE Infrastructure - part of industrial giant GE - and investment bank Credit Suisse are also backing the deal, which must be approved by EU regulators. | |
Nearly two million passengers used the airport last year. | Nearly two million passengers used the airport last year. |
'Maximising value' | |
The airport targets business travellers, with its proximity to the Docklands making it the airport of choice for many bosses working there. | The airport targets business travellers, with its proximity to the Docklands making it the airport of choice for many bosses working there. |
It revealed plans earlier this year to boost passenger numbers to three and a half million by 2015 and eight million by 2030. | It revealed plans earlier this year to boost passenger numbers to three and a half million by 2015 and eight million by 2030. |
New routes launched this year include Milan, Stuttgart and Madrid. | New routes launched this year include Milan, Stuttgart and Madrid. |
The airport is a favourite of many people working in Docklands | The airport is a favourite of many people working in Docklands |
Mr Desmond bought the airport for £23.5m in 1995 after it had struggled to build business in its early years. | |
London City Airport said the sale price reflected the new owners' faith in its growth potential. | |
"London City Airport understands that its new owners plan to work closely with the existing airport management team to maximise the development and future value of the airport," it said. | |
2012 boost | |
It has enjoyed strong growth in the past two years with monthly passenger figures hitting a record of more than 220,000 in June. | It has enjoyed strong growth in the past two years with monthly passenger figures hitting a record of more than 220,000 in June. |
London's successful bid to stage the 2012 Olympics has increased the value of the airport. | London's successful bid to stage the 2012 Olympics has increased the value of the airport. |
The event is expected to significantly boost traffic numbers and raise the airport's profile overseas. | The event is expected to significantly boost traffic numbers and raise the airport's profile overseas. |
Several consortia were interested in buying the airport including one led by British construction company Balfour Beatty. | |
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