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Gatwick airport is set for a multi-million pound makeover after it was sold today for £1.5 billion.
The new owners are planning to challenge Heathrow for budget passengers with a major overhaul of services and new routes to long-haul destinations.
Under the new plans Global Infrastructure Partners are also set to call for a second runway, increasing flight capacity by 40 per cent.
Gatwick, which handles 32 million passengers every year, is the busiest single-runway airport in the world. The new moves would take the airport to a point where it would handle 45 million passengers a year.
Under a long-time agreement with Gatwick locals, a new runway can not be built at the airport until 2019.
However, given long planning lead times, it is understood the airport's new owner will begin the planning process now to deliver a new runway as soon after 2019 as possible. That will cause a storm of protest across the South, from householders blighted by more airline noise to environmentalists attempting to curtail the carbon-intensive activities of the aviation industry.
Global Infrastructure Partners is a joint venture between the American conglomerate General Electric and the international bank Credit Suisse.
GIP bought the business traffic-oriented London City Airport in Docklands for £700 million two years ago.
It is understood GIP plans to shake up Gatwick and make it the airport of choice for holidaymakers by keeping its biggest airline, easyJet, and all the European package tour airlines but also developing more far-flung international destinations.
Gatwick was put up for sale by Spanish-owned BAA after the Competition Commission ruled its ownership of Heathrow, Gatwick and Stansted gave it too much market power — as it had more than 90 per cent of the London airline passenger market.
“Gatwick and its people have long been a central part of BAA,” said BAA chief executive Colin Matthews.
“But BAA is changing and today's announcement marks a new beginning for both Gatwick and BAA.
“BAA will focus on improving Heathrow and our other airports.”
BAA is challenging the Competition Commission's ruling that it must also sell Stansted and one of either Edinburgh or Glasgow airports.
Reader views (2)
The fact is Heathrow is near capacity and if it is not to get a 3rd runway then either Gatwick or Stanstead will need a 2nd.
It makes sense for one of the other airports to get a 2nd runway as this would provide an alternative if Heathrow is not working, one only has to consider what would happen if a major crash wether accidental or terrorist put heathrow out of service.
As mentioned the time it will take to get planning permission and agree and design a 2nd runway means it makes sense to start planning now.
- Melvyn Windebank, Canvey Island, Essex (ex Islington ec1)
Why can they not sell the horrible 5 terminals at Heathrow?!
- Georgie, Islington, London
