BAA to sell Edinburgh Airport

Published on Wednesday 19 October 2011 11:41

AIRPORT operator BAA is to sell Edinburgh airport, the Spanish-owned company announced today.

BAA, which operates six UK airports, had been ordered by the Competition Commission (CC) to sell either Edinburgh or Glasgow airport.

BAA said today it had decided that Edinburgh would be the one to be sold and that - if all goes well - the sale will be agreed by next summer.

After a long inquiry, which has led to numerous legal challenges, the CC found that BAA’s ownership of UK airports was anti-competitive and ordered the company to sell Gatwick, Stansted and one of either Glasgow or Edinburgh.

Gatwick has already been sold to an American concern and BAA is still disputing the Stansted decision.

BAA, which also operates Heathrow, Southampton and Aberdeen airports, said today: “We are now commencing preparations for a sale (of Edinburgh) and expect to formally approach the market in the new year with a view to agreeing a sale by summer 2012.

BAA chief executive Colin Matthews added: “Edinburgh is a great airport with a great team and a great future and we will be very sorry to see it leave BAA.

“We remain committed to Scotland and we will continue our long-term investment to improve passenger and airline experience at Aberdeen and Glasgow, as well as at Edinburgh until the sale is complete.”

He went on: “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.

“Passenger numbers at Edinburgh have grown by more than 6% over the past year and 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 and we think BAA is well-placed to build on its recent success. Both airports are of national importance and have a bright future.”

Edinburgh is Scotland’s largest airport, handling more than nine million passengers a year and more than 100,000 flights.

Passenger numbers have grown by 6.1% over the past 12 months and by 9.5% since the start of 2011. Around 40 airlines connect Edinburgh to more than 120 destinations. The airport is also a burgeoning cargo hub with 10,200 tonnes of cargo in the past year.

Edinburgh directly employs 485 staff and supports 7,500 jobs across Scotland.

BAA made a £42 million investment in 2010 in the departure lounge and security hall.

Jim O’Sullivan, managing director of Edinburgh Airport, said: “Today’s announcement brings the clarification that many had been calling for and although we will be sorry to leave BAA, we do so in the knowledge we are in an extremely strong and healthy position.

“Not only has Edinburgh Airport benefited from considerable investment in recent years but we have an excellent team in place which has been the driving force behind our success to date.

“We will now begin preparing for the sale process, but irrespective of who may own it, the team at Edinburgh Airport will undoubtedly continue to deliver for its passengers, the city and Scotland as a whole.”

Amanda McMillan, managing director of Glasgow Airport, said: “Clearly we welcome today’s announcement as it marks the end of what has been a prolonged period of uncertainty. Now a final decision has been reached we can concentrate our efforts on ensuring Glasgow Airport, as part of BAA, continues to deliver for its passengers, the city and Scotland as a whole.”

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Roderus Beavrus aka Robin Bankes

Friday, October 21, 2011 at 05:08 PM

#1 The priority for any potential buyers will be reducing costs and ridding the airport of companies who are hampering any potential profitabilty. They will not have any cash available for a long long while to upgrade understrength runways. I would expect this black day for EDI to result in GLA strengthening its position of long haul gateway. And sadly many jobs to go at EDI in the process :-( Some it would appear think it is preferrable for EDI to have its head office in Manchester rather than in Scotland.

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12

footdee

Thursday, October 20, 2011 at 12:06 AM

Any there any unionists left after reading this-----------------------------"While Norway reaps benefits of its oil pension fund, Scotland faces poverty in our generation’s old age 0 comments Published on 17 Oct 2011 So Scottish oil is to keep flowing until 2050 and that is not including the reserves of oil and gas west of the Hebrides, presumed equivalent to $1million (US) for each Hebridean. This week I had the pleasure, at Westminster, of meeting Norwegian Politicians from the Cross Party Standing Committee on Business and Industry from the parliament in Oslo. To my astonishment they were arguing about the rate of spending in Norway and whether it should be increased. The UK’s arguments are about the rate of cutting. "

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11

Exiled Leither

Wednesday, October 19, 2011 at 11:52 PM

When I used to do a lot of long haul travel for work I used to prefer using Amsterdam Schipol for my hub as Heathrow is a nightmare. I was never that impressed by Edinburgh but that was probably more to do with jobsworth s in security and layabouts at the rest of the airport, general British work ethic that though.

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10

Bunch of malcontent whingers

Wednesday, October 19, 2011 at 08:18 PM

The main reason for selling Edinburgh is that it is close to capacity and requires a second runway and as BAA has already failed once in getting that approved I suspect it has decided to cut its losses and concentrate on the growth at Glasgow.

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9

Afredo Garcia

Wednesday, October 19, 2011 at 05:48 PM

Maybe a new owner will extend the Tram line...

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8

Botanics

Wednesday, October 19, 2011 at 04:20 PM

Comment removed by moderator

7

Marga

Wednesday, October 19, 2011 at 03:51 PM

Not much mystery to it, mahatmacoat, for BAA Edinburgh was just a feeder airport for the London setup. Interesting times indeed. So long as it doesn't fill up with Ryanair I'll be happy.

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6

Bunch of malcontent whingers

Wednesday, October 19, 2011 at 03:47 PM

As a business traveler I would welcome regular schedule long haul flights.

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5

MeMyself&I

Wednesday, October 19, 2011 at 03:22 PM

I have to say that if there is one private company really has got it right over the past couple of decades it’s BAA, particularly in their running of Edinburgh Airport. They have enlarged, modernised and grown the airport fantastically over the last 20 years. It really is a slick operation nowadays. Especially if like me you are a business traveller. From a selfish perspective I really don’t want long haul package flights leaving from Edinburgh so let’s keep them in Glasgow eh! All these plebs that fly once a year (and who’s highlight of the day is the 7am airport pint – after all, you have to don’t you?)drifting around the airport, not knowing where they are going and generally getting in the way – no thanks. I do wonder what we will get instead, better the devil you know eh. I do hope it’s a global player with the funds and focus to keep driving Edinburgh forward. Not some dodgy gang of small time investors as was being touted the other day. (The guy from TIE no less!)

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4

Old Jim

Wednesday, October 19, 2011 at 02:41 PM

Now if only the UK Government would devolve Air Passenger Duty to Scotland, like it is dong with N Ireland then that would be the icing on the air travel cake

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3

Old Jim

Wednesday, October 19, 2011 at 02:38 PM

Happy days are here again!... At last we are shot of the BAA We will now have an airport that can offer so much more and attract long haul flights and finally negate the reqiurement of having to feed into Heathrow

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2

JulesF

Wednesday, October 19, 2011 at 02:11 PM

Apparently they're taking the runway with them !

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1

mahatmacoat

Wednesday, October 19, 2011 at 12:18 PM

It will interesting to see what assets are transferred west in the coming months. Hopefully new owners will insist on a covenant-free sale and get on with attracting the long haul and leisure traffic mysteriously missing at present.

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