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THE future of Gatwick has turned from the uncertain to the farcical after the forced sale of London's second airport was derailed by news that no one wants to buy it.
Gatwick has been put up for sale after the Competition Commission ruled that BAA's monopoly ownership of it, Heathrow and Stansted is giving consumers a raw deal.
However, an auction process kicked off by BAA and its Spanish owner Ferrovial appears to have fallen apart with the withdrawal from the process of the Manchester Airport Group.
The Manchester Airport Group, which also owns East Midlands and Bournemouth airports and is owned by the 10 borough councils that form Greater Manchester, has reportedly walked away after refusing to match BAA's reserve price of £1.5 billion for Gatwick.
Of the original three bidders in the auction that leaves the owners of London City airport, the investment fund Global Infrastructure Partners, a joint venture between General Electric of the US and Credit Suisse which in the UK also owns the Port of Great Yarmouth and the waste company Biffa. GIP, it is understood, is also refusing to match the £1.5 billion price tag.
The third bidder, a Citigroup-led consortium, quit the bidding process two months ago.
Though industry insiders believe Manchester's withdrawal may yet be a tactic to get Gatwick to drop its price, the sale of the busiest single-runway airport in the world appears to be in limbo.
BAA is, in any case, appealing the forced sale of the airport . The Competition Commission ruled it must dispose of Gatwick and Stansted and north of the border, where it also enjoys a regional monopoly, either Glasgow or Edinburgh airports.
However, Ferrovial also desperately needs the money from the proceeds of a Gatwick sale.
The Spanish have a £12 billion BAA debt mountain, a hangover from the hugely-leveraged £15 billion takeover of the airports group and a refinancing of those borrowings has left it with a repayments schedule of £1 billion a year.
Reader views (8)
Blame BAA. They couldn't organise a "big drink" in a brewery. For example at Heathrow, people are waiting to move, but BAA are sitting on their brains leaving the residents in limbo.
When the Government gave the green light at Stansted, BAA were buying properties within weeks. At Heathrow, NOTHING!
BAA are obviously using delaying tactics till the next election and won't put their money where their mouth is.
- Jim, Heathrow, 16/07/2009 16:54
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dont want to see any more airport expansion who needs that airport hassle anyway havent flown for 8 years now have all i need in b isles people were far happier before all this flying about were raping this planet with fumes and overpopulation we have to alter the way we live.if it means we have to fly less and drive less so be it.
- C May, bromley, 16/07/2009 13:56
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"there are plans moving ahead to build a far better airport in the Thames Estuary."
...in several decades time even if it isn't thrown out for the lunacy it is.
- Tom, London, UK, 16/07/2009 12:46
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Why would anyone want to buy an airport so restricted regarding any future commercial expansion. This in a country where the government is determined to 'price out' the ordinary holiday traveller by unilaterally increasing fares under the guise of 'being green' when everyone knows it is to raise yet more taxes to spend on more crap ideas. A failing industry in a failing second rate country !!
- Nick Holland, glasgow, 16/07/2009 12:37
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A main airport should be in the centre of the country so that passengers don't have to travel a long distance to get to destinations like America. Imagine an intending passenger having to travel say from the North of Scotland to London and vice versa.
T H Leeds
- Thomas Hayes, Leeds UK, 16/07/2009 11:14
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Bin it
- David M, London, 16/07/2009 10:22
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The future of Gatwick is doubtful when there are plans moving ahead to build a far better airport in the Thames Estuary.
- Simon Ellis, London E8, 16/07/2009 08:41
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Gatwick is a nightmare in the summertime. Needs millions and millions spent on it to make it easier to use. Queues at check-in desks merge with each other and stretch across into those on the opposite desks making it impossible to pass through. At the incoming end the people awaiting passengers spill into the incoming passenger way. The seats that were there for people waiting to meet people have been removed to force them into the coffee shop making it very difficult for people with any sort of handicap. The walkways to and from the aircraft are far too long and not mechanised. And the queues through the security checks merge with check in and pass through traffic. About the only improvement is the car park, but even here the two park ticket machines are not adequate to clear the back up of passengers arriving to them.
- Albert Hall, hove england, 16/07/2009 08:03
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