Three UK Airports Being Prepared for Sale

By Ben Marlow

THREE of Britain’s non-privatised airports East Midlands, Bournemouth and Humberside are being considered for sale by owner Manchester Airports Group.

Management at the group, made up of 10 local authorities in Greater Manchester, have conducted a secret internal review on the ownership of its regional airports.

Sources familiar with the situation have told The Business that early indications are the three airports will be sold, leaving the group to focus on developing its best asset Manchester airport.

The news will fuel speculation the sale is a prelude to a disposal of Manchester airport itself, seen as one of Britain’s most sought-after pieces of infrastructure.

Investment bankers believe Manchester airport Britain’s third- largest and the busiest outside London could fetch around Pounds 2bn (E3bn, $3.8bn). But sources say that disposal is unlikely because the councils view the airport as central to the regional economy.

Instead, it is expected East Midlands, Bournemouth and Humberside airports will be sold for up to Pounds 500m, which Manchester Airports Group intends to pay back to its shareholders in the form of dividends and to fund more development at Manchester airport.

Bankers have told The Business a disposal of the assets, individually or as a package, is likely to spark a bid frenzy from some of the world’s biggest infrastructure funds and trade players.

Transport analyst Mark McVicar of Dresdner Kleinwort told The Business: “Regional airports are a big growth market because they are expected to fill up with low-cost and charter airlines.

“They are also a unique asset as no one is going to build another

airport in the UK.”

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