columbia107
Posts: 328
Joined: Thu Aug 19, 2004 4:42 am

American Led Group Buys London City Airport

Sat Oct 14, 2006 4:57 am

American International Group and an investment fund run by General Electric and Credit Suisse Group announced an agreement last Wednesday to buy London City Airport for an undisclosed amount from the Irish billionaire Dermot Desmond, taking over a terminal serving almost two million regional business travellers a year.

AIG, which is a leading insurer, and the fund run by GE and Credit Suisse will each own 50 percent of London City Airport, the companies said.

The 139-acre, or 56-hectare, airport handles small turbo-prop and jet aircraft like the ATR 42 and British Aerospace 146 for short-haul flights to British and other European destinations.

Its terminal serves almost two million regional business travellers a year. London's City Airport is much more convenient than the other London airports as it's much easier to get to from the office, especially when you fly back and forth from Europe a lot.

The relocation of law firms and the headquarters of banks to Canary Wharf, where about 78,000 people now work, has driven the airport's growth since its opening in 1987.

The airport handled two million passengers in 2005. About 70 percent of those travel for business and make their return trip on the same day or a day later.

City Airport forecasts that the expansion of Canary Wharf, a London financial district, and the 2012 Olympic Games will help quadruple passenger numbers to eight million in the next 25 years.

Airports are attracting interest from investors in search of reliable flows of cash.

AIG, General Electric and Credit Suisse won a three-month contest for the airport, defeating bids from a group comprising Cologne-Bonn Airport and the infrastructure fund Galaxy, and a team including Balfour Beatty and Merrill Lynch.

Fraport, operator of Frankfurt airport, pulled out of the race last month saying the price could not be justified.
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SJUSXM
Posts: 261
Joined: Fri Aug 11, 2006 1:52 pm

RE: American Led Group Buys London City Airport

Sat Oct 14, 2006 5:14 am

could this mean we could see an expansion of the runway and see larger acft into LCY or is there another reason why larger acft arent allowed?
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N328KF
Posts: 5810
Joined: Tue May 25, 2004 3:50 am

RE: American Led Group Buys London City Airport

Sat Oct 14, 2006 5:20 am

Quoting SJUSXM (Reply 1):
could this mean we could see an expansion of the runway and see larger acft into LCY or is there another reason why larger acft arent allowed?

AIG and General Electric want to expand the airport for the 2012 Olympics.

Of note: I believe it was this exact same consortium (at least, GE Capital was involved) in the counterbid for BAA against Ferovial.
When they call the roll in the Senate, the Senators do not know whether to answer 'Present' or 'Not guilty.' -Theodore Roosevelt
 
vv701
Posts: 5805
Joined: Fri Aug 19, 2005 10:54 am

RE: American Led Group Buys London City Airport

Sat Oct 14, 2006 5:42 am

Quoting SJUSXM (Reply 1):
could this mean we could see an expansion of the runway and see larger acft into LCY or is there another reason why larger acft arent allowed?

The landing glide path is a steep 5.5 degrees so only aircraft certified for such an approach can use the airport.

There are no plans to extend the runway. Capacity will be increased by increasing the number of stands by increasing the apron size and by ending the terminal. There are also plans to construct a maintenance area.
 
sk736
Posts: 550
Joined: Tue Aug 08, 2006 4:47 am

RE: American Led Group Buys London City Airport

Sat Oct 14, 2006 7:55 pm

Quoting VV701 (Reply 3):
Capacity will be increased by increasing the number of stands by increasing the apron size and by ending the terminal

What, no more terminal? Will passengers check-in in the open air then?  Big grin
 
columbia107
Posts: 328
Joined: Thu Aug 19, 2004 4:42 am

RE: American Led Group Buys London City Airport

Sat Oct 14, 2006 8:48 pm

Quoting SK736 (Reply 4):
What, no more terminal? Will passengers check-in in the open air then?

Gremlins at work. I meant extending the terminal.
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