For sale? One airport with an uncertain future and falling footfall

Published on Tuesday 11 October 2011 23:57

UNCERTAINTY hangs over the future of Scotland’s fourth- largest airport after its owner signalled a possible sale – just as its main rival may also be about to change hands.

It has emerged that the New Zealand-based Infratil signalled it may put Prestwick on the market, two days before the surprise announcement last Friday that BAA’s enforced sale of Edinburgh or Glasgow will be accelerated.

Experts believe Glasgow is more likely to be sold, with its new owner expected to aggressively woo airlines such as Ryanair, which accounts for nearly all of Prestwick’s flights.

Infratil chief executive Marko Bogoievski said: “Glasgow [Prestwick] isn’t performing. It’s a difficult asset to see in the portfolio in the long term.” He said the firm might spend the proceeds on other airports or develop its energy business in Australia and New Zealand, which offered more reliable earnings.

His comments come after the Ayrshire airport’s passenger numbers slumped by nearly one-third from two million to 1.4 million in two years. Prestwick, and Manston in Kent, Infratil’s other UK airport, made a combined loss of £6 million in the year to March.

Infratil chiefs previously criticised Prestwick’s “shambolic” terminal seven years ago, which triggered major improvements.

Ryanair chief executive Michael O’Leary has said it might operate up to 40 summer routes from Glasgow should that airport be sold, as he hopes to get a better deal than from BAA.

Ryanair operates 24 winter routes from Prestwick and 35 from Edinburgh. A key question is whether Prestwick would remain viable if Ryanair scaled back its operations there and other airlines did not take its place.

However, one of the Ryanair’s main aircraft maintenance bases is at Prestwick, and the airport still has a sizeable, if shrinking air cargo operation. Analysts said the possible sale of both Prestwick and Glasgow could pose major problems for the former.

John Strickland, of JLS Consulting, said: “There will be more competition between the three Central Belt airports after one of the BAA ones has been sold.

“Prestwick has relied largely on Ryanair for its business, which has made it difficult for the airport because the airline is very cost-focused and it can be challenging to get sufficient return. It is also challenging economic times, when holiday passenger volumes have suffered.”

Mr Strickland said Prestwick had also suffered after Ryanair switched from routes with big-spending visitors stocking up on duty free – such as Scandinavia – to holiday destinations for lower-spending Scots.

Prestwick – 30 miles south of Glasgow – was bought by Infratil ten years ago from Perth-based Stagecoach.

The airport reinvented itself to serve the no-frills airline after losing its unique status as Scotland’s sole transatlantic gateway in the 1980s.

That developed from Prestwick providing a key staging post for aircraft refuelling en route to or from the Americas.

Elvis Presley set foot on British soil for the only time during one such stop, while his US army troop carrier was heading for Germany in 1960.

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Star o' Rabbie Burns

Wednesday, October 12, 2011 at 05:40 PM

What's the only Scottish airport with its own railway halt? Prestwick. What's the Scottish airport with the best fog-free capability? Prestwick. Which of the developed Scottish airports has the longest main runway? Prestwick. Which main Scottish airport has the greatest capacity for infrastructure expansion? Prestwick. Stands to reason then. Which Scottish airport is most-likely to be closed?

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freeesian

Wednesday, October 12, 2011 at 01:16 PM

I regularly fly, not just because of the time saving, but more to P155 off the ecomentalists. Reckon I've done about 35000miles this year, can someone work out the size of my carbon footprint?

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Conan the Librarian

Wednesday, October 12, 2011 at 12:49 PM

Is "falling footfall" the best way to describe traffic at an airport...?

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Rod Dalitz

Wednesday, October 12, 2011 at 10:58 AM

Many years ago, a high-speed rail link between Edinburgh, Glasgow, and Prestwick would have allowed development of Scotland's best fog-free airport site, and concentrating all air traffic into one place.

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gus1940

Wednesday, October 12, 2011 at 07:11 AM

Close Glasgow Abbotsinch and move the flights to Prestwick which has an excellent high speed electrified railway line adjacent to the airport. When Renfrew closed it was a purely political decision to develop Abbotsinch to please Weegie vanity and at that time Prestwick should have been made Glasgow's airport.

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Charles Linskaill

Wednesday, October 12, 2011 at 12:23 AM

Apart from business flights, most people in these days of economic crisis can't afford the luxury of air travel, not surprisingly we will see more airports with uncertain futures.

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