25.10.05
The top bidder in the controversial proposed sale of Exeter Airport has withdrawn from the process. Just over a week ago Exeter airport based Flybe had asked South West Airports Consortium (SWAC) to gracefully pull out of the purchase, which is exactly what it has done.
Devon County Council decided last year to sell most of its shares in Exeter airport because it said it could not afford the investment needed to develop it. It announced earlier this year it was selling its 75% stake and received a bid from Macquarie, a partner in SWAC who also own Bristol airport.
But there were concerns that such a sale was anti-competitive because the company would have interests in both Exeter and Bristol airports. Critics added that it might have meant that Exeter would have been reduced to a support role to Bristol.
The withdrawal by SWAC follows the Office of Fair Trading's referral of the planned sale to the Competition Commission. The Competition Commission's investigation was expected to last up to six months. SWAC said the referral to the commission was the reason for the withdrawal of its bid.
A spokesman said: 'We were very disappointed with the referral. Basically the process would have taken quite some time and expend a lot of resources with no certainty of a positive outcome for us and it's a very small acquisition from our perspective.'
Devon County Council said it would take appropriate steps to ensure that its investment aims for the airport were achieved and consider what further action should be taken in the light of the withdrawal by SWAC.
Council Leader Brian Greenslade said: 'The county council will continue to give it the support it deserves while the future longer term investment needs are resolved.' Exeter International Airport saw the biggest rise in number of aircraft handled by a regional airport in 2004, with passenger numbers up 45%.
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