London City Airport has revealed that its consortium is among the bidders for nearby London Southend Airport, which is located on the UK east coast.
Earlier this year Southend Airport owner Regional Airports (RAL) formally invited offers for the majority, or all, of its shareholding after receiving a number of unsolicited approaches.
“We submitted a bid in the middle of last week to RAL,” says a London City Airport spokeswoman. “We feel that we’re in good stead to come on board and increase the commercial benefits of the airport. Our intent is to run and develop the airport.”
She says London City is leading a consortium which includes its owners, AIG and Global Infrastructure Partners, as well as merchant bank Greenhill and infrastructure specialist John Laing Projects and Developments.
London Southend Airport is situated 3km to the north of Southend-on-Sea, which is located on the UK east coast at the mouth of the river Thames. It is 49min by train from London’s business district and 42min from the site of the 2012 Olympic Games.
The spokeswoman says Southend Airport is an interesting opportunity because of the lack of available capacity in the southeast region of the UK.
Under its bid London City plans to replicate its own model at Southend, with investment in terminal and runway facilities and the creation of an airport rail station. It also plans to develop the airport’s passenger, freight and corporate aviation activity.
Southend Airport is among London City’s competitors, although the spokeswoman says it is too early to judge whether the deal would hit any regulatory hurdles, especially as London airports operator BAA is facing a potential break-up.
Last year London City Airport, acting as part of a consortium led by UK construction and services company Balfour Beatty, won a tender to acquire Exeter Airport in the UK southwest.
Source: flightglobal.com's sister premium news site Air Transport Intelligence news
Source: FlightGlobal.com