Manchester Airport ‘plans Gatwick raid’
18.03.08
Manchester Airport bosses have rival Gatwick 'firmly in their sights' as MPs and leading airlines call for the break-up of BAA, the Manchester Evening News reports. The UK's biggest airports operator is currently the subject of a review by the Competition Commission, which could rule that it should sell one of its London airports.
A powerful committee of MPs has called for BAA's monopoly of the capital's major gateways - it also owns Heathrow and Stansted - to be ended over the weekend. Yesterday, senior executives from easyJet, Ryanair, Virgin and bmi met transport secretary Ruth Kelly to also make this call.
Manchester Airports Group (MAG), the country's second largest airports operator behind BAA, already owns East Midlands, Bournemouth and Humberside Airports, 'but would dearly love to add a London gateway to its portfolio,' the newspaper reports.
It says that, although Gatwick or Stansted would cost billions, MAG chiefs are willing to form a partnership with private equity or other outfits, such as American investors or the Australian infrastructure and banking giant Macquarie, to achieve their goal.
Geoff Muirhead, chief executive of Manchester Airports Group, told the MEN: ‘We have a strong track record when it comes to running airports - we have a lot of skilled people who have developed very good relationships with airlines and other partners. The group is interested in acquiring assets that will add value for our shareholders.’
The newspaper speculates that 'BAA, which is owned by Ferrovial, could decide to press ahead with a break-up of its own accord before being ordered to do so by competition regulators, which would prevent a 'fire sale' of its assets. That could mean an announcement by the end of the year.'
With the Competition Commission not expected to report before the end of the year (and a final outcome perhaps two years away after appeals), BAA planning to use the London airports to back bonds refinancing its debt, and the growing credit crisis driving down the value of assets, we think this is unlikely.
In addition, MAG is owned by the 10 local authorities of Greater Manchester. We can see a value in the council's owning the airport, which has low debt levels and produces a good income stream for them. It might be difficult politically for the councils to back a highly leveraged - and therefore risky - airport purchase, even with a big partner in tow.
Add to: del.icio.us | Digg it | Newsvine | NowPublic | Reddit
To book manchester airport hotels or Manchester airport parking at the lowest price, click on these links to two great Manchester airport parking and Manchester airport hotels price comparison pages.
