06.05.08
Manchester Airports Group (MAG) said it would be interested in buying Gatwick Airport should BAA be forced by the Competition Commission to sell it, the BBC reports, citing the company's chief executive.
MAG currently owns Manchester, East Midlands, Bournemouth and Humberside airports, and is the largest airport operator in the country after BAA. It is currently considering selling Humberside Airport, although this is unlikely to raise much cash.
Geoff Muirhead, chief executive of MAG, told the BBC: 'We'd be interested in any assets that come up, on the premise that we feel we could improve the performance of the group on the back of it, at a price that was sensible.'
The Competition Commission (CC) last month said that BAA, which owns seven United Kingdom airports, 'may not be serving well the interests of either airlines or passengers'. No conclusions have been reached, but the CC confirmed its final findings in August could require 'the sale of one or more of BAA's airports'.
The BBC said Gatwick is seen as the most likely candidate for sale in the South East, with industry experts estimating the London airport could fetch £2bn - £3bn. The CC also criticised BAA's ownership of Edinburgh and Glasgow Airports, with reports also suggesting that it could be forced to sell Glasgow Airport, with rumours that this would be MAG's target. Price wise, at around £700m, it would seem more realistic.
MAG is privately owned by ten borough councils. How they would justify the investment and risk of taking on the purchase of Gatwick, we are not sure. One councillor already suggested that they should sell up. They could justify controlling the regions airport – it helps the councils encourage growth in the area, and it can take a longer term view, focusing on wider benefits rather than short term profits – but could you justify owning a large London airport? Especially if things go wrong.
