London City 'would bid for Gatwick' as passenger numbers rise
05.11.07
London City Airport would bid for Gatwick or other rival terminals, if BAA put them up for sale, Bloomberg reports. The claims came in an interview as the airport reported passengers will probably exceed 2.85 million this year, 6 percent more than it projected, as travellers switch from Heathrow to the docklands hub.
London City is owned by American International Group, Credit Suisse Group and General Electric. They bought the hub £742m last year from Irish billionaire Dermot Desmond. London City Chief Executive Officer, Richard Gooding, said in an interview that the airport will consider bidding for BAA's UK airports, if Spanish parent Ferrovial opts to sell them in order to placate regulators.
He said: 'There's nothing in front of us today, but we are business people and if there is some business around that's of interest to our shareholders and us, we'll want to have a crack at it. Gatwick and Southampton are the two we'd be most interested in.'
The Competition Commission is probing the dominance of BAA in Britain and may force it to sell some assets, although this would be a couple of years away on the inquiry's current timetable. Inigo Meiras, Ferrovial's head of airports, said on October 31 that the company is ready to sell Gatwick if required to do so and that a disposal 'wouldn't be a tragedy.'
However, Mr. Gooding said Ferrovial could receive more than 100 expressions of interest if BAA's assets were offered for sale. He said: 'If it's broken up and it's a straightforward auction, our shareholders are in that business, in the business of owning infrastructure, so why wouldn't they be interested?'
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