London City airport could make up to £2 billion after US owners put it up for sale
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Version 0 of 1. It is loved by travelling city workers and private jet owners for its closeness to Canary Wharf and speedy access to the City. But now the owners of London City airport are about to find out just how much it is worth, after they put it up for sale. Growing demand for air travel is said to have prompted Global Infrastructure Partners (GIP) to appoint advisers to work on a deal. The fund, which also owns Edinburgh airport and 75 per cent of Gatwick, wants to get a deal done by the end of the year, the Financial Times reported, and they expect to get around £2 billion for it. The airport, just seven miles from the City, is a favourite of workers from the financial centre, as well as those in even closer by Canary Wharf. It has grown strongly in recent years, despite the onset of the financial crisis and subsequent recession. In 2007, just over 2.9 million passengers passed through its doors. By 2014, that number had grown to an estimated 3.7 million. It also attracts wealthier and corporate travellers through its private jet centre. The airport has plans to increase its capacity dramatically by 2023, with ambitions to take in 6 million passengers and increase the number of take-offs and landings by 50,000 a year to 120,000. It has, however, faced challenges to expansion, including difficulties in getting planning permission as a result of concerns over noise. GIP bought the airport from Irish businessman Dermot Desmond in 2006. It is said to have paid around £750 million for the site. |