Gatwick will be sold today for £1.5 billion, in a move expected to prompt a series of developments at the airport. As part of BAA’s plan to reduce its £10 billion debt burden, the airport will be sold to Global Infrastructure Partners, an investment fund that also owns London City Airport. The fund is a joint venture between Credit Suisse, the investment bank, and GE, the world’s largest company. Most of the price will be raised from major banks including HSBC, RBS, Credit Suisse and JP Morgan.

There could now be a new era for Gatwick as it repositions itself as the airport of choice for holidaymakers in the South East. It has been seen as the poor relation to Heathrow, but Global Infrastructure Partners is understood to want to attract holidaymakers rather than businessmen as part of its strategy for the airport south of London.

The hope is that Gatwick can garner business from international airlines offering package holidays and destinations in far-flung locations while keeping low-cost carriers such as easyJet that fly to European destinations.

Read the full article in The Times.


Breaking up BAA is a positive step, but will this really achieve the Competition Commission's objective of greater competition in the south east? GIP already owns London City Airport.