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Branson lays out plan for airlines to buy Gatwick
02.09.08
Sir Richard Branson today outlined plans to build a consortium of airlines and outside investors to launch a £2 billion bid for Gatwick Airport.
The Virgin Atlantic founder and president said it was time Britain's airports were run by airlines focused on customer service rather than the all-powerful monopoly BAA.
Other airlines which could be interested in joining a consortium include easyJet, Ryanair and charter flights group Monarch.
Branson wants to eventually build a terminal for Virgin Atlantic, just as British Airways has done at Heathrow's Terminal 5, and a takeover of Gatwick could provide such an opportunity.
However, industry analysts warned that it was early days since Gatwick was not yet up for sale and said Virgin would face stiff competition from bidders around the world for such a prized asset, which is Britain's second biggest airport behind Heathrow and handles about 34 million passengers a year.
The Competition Commission last month ruled that BAA's Spanish owner Ferrovial must sell two of its three airports in London — Heathrow, Gatwick and Stansted — but its final report is not expected until next February.
However, Branson has held talks with several potential partners, thought to include funds backed by Dubai's ruling family. “We are open to being courted by anyone interested in bidding,” he said.
Virgin Atlantic spokesman Paul Charles dismissed the idea that this was just talk. “We are very serious,” he said. “Richard has spoken to people already. It wouldn't be on our own, it would be as part of a consortium.”
One airline analyst said: “This is not really surprising. Everyone is interested. But the break-up of BAA is still some way off.”
Branson wants to build a consortium based on the model of National Air Traffic Services (NATS), the public-private partnership that runs air traffic control and is 40% owned by the airlines, including Virgin Atlantic.
“It now looks as though they are going to break up BAA and so they should,” Branson said. “For the last few years they [BAA] have been an absolute embarrassment.”
