Gatwick owner wins £807m auction for Edinburgh airport

Global Infrastructure Partners, which also owns London City, will pay £807 million for the facility after winning an auction forced upon owner BAA by the Competition Commission. The firm will take ownership at the beginning of June and is expected to conduct an extensive review of operations. Michael McGhee, the partner who led the acquisition talks, said he could not elaborate on future management or staffing of the airport. But he said there would be a focus on improving the levels of service for passengers and the airlines. “Our objective is to increase the available options,” he said. “This may involve more direct routes in and out of Edinburgh.” He was not prepared to discuss particular issues, such as the ongoing dispute with Ryanair over landing charges, or the availability of slots resulting from Bmi’s sale to British Airways’ owner International Airlines Group. A spokesman for Ryanair said the sale of Edinburgh airport “will free it from the dead hand of the high-cost BAA monopoly. Ryanair looks forward to working with the new owner of Edinburgh to lower costs and grow traffic and routes.” Hugh Aitken, UK commercial manager for easyJet, said: “We have long argued the need for competition between Edinburgh airport and Glasgow and so the sale of Edinburgh to Global Infrastructure Partners should be good news for travellers in Scotland. “We look forward to working with GIP on how Edinburgh airport can be further developed in a way which both lowers costs for passengers as well as enhancing the passenger experience. GIP beat off a rival offer from JP Morgan Asset Management believed to be pitched at £735m. Fifty parties expressed an initial interest and four were shortlisted. 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.” Brown said that Scottish ministers were “committed to boosting direct flights from Scotland and maximising our international connections”. 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: “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.” He also urged the airport’s new owner 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 the airport”. Scottish Conservative finance spokesman and Lothians MSP Gavin Brown said the deal was “the start of a new chapter in Edinburgh airport’s history”. Laura Carstensen, a member of the original CC inquiry group, said: “GIP’s track record is very strong and we anticipate that customers at Edinburgh will soon see the benefits of new management approaches, and that Scottish passengers and airlines more generally will also gain from the introduction of a more competitive environment. We hope to be in a position to proceed with the sale of Stansted before too long.”