City tightlipped over Gatwick

However, after the Competition Commission recommended BAA sell two of its London
airports, City has gone quiet.

Some commentators believe the change in strategy points to a bid being mounted.

Jane’s aviation expert Chris Yates said: “When putting a bid together, it’s best to keep your trap shut until
you’ve got your plan in place. You don’t keep talking about it and tipping off your competitors.�

Previously, City executives have not been shy on talking up their interest in the Sussex airport.

Last July, City’s chief executive Richard Gooding said: “There is nothing in front of us today, but we are business people and if there is some business around that’s of interest to our shareholders and us, we’ll want to have a crack at it.

"Gatwick and Southampton are the two we’d be most interested in.�

In November last year the airport’s business strategy director Charles Buchanan said the City was not after Gatwick – because it was not on the market.

Now with it possibly about to be sold, executives at City Airport are refusing to confirm or deny a bid.

This week, London City, which is owned by Global Infrastructure Partners – a joint venture between Credit Suisse and General Electric’s GE Infrastructure – and AIG Financial, refused to comment on its interest, as it was “commercially sensitive�.

The preliminary inquiry by the Competition Commission recommended the owner of Gatwick, Heathrow and Stansted should sell two of the London hubs.

The commission is to report its final findings in April next year.

In the original ruling last Wednesday, inquiry chairman Christopher Clarke said BAA’s ownership of seven UK airports had led to “significant competition problems�.

Due to BAA’s huge investment in Terminal 5 at Heathrow, it is widely accepted that Gatwick and Stansted would be the airports to go. BAA said it was reviewing the report from the Competition Commission.

If Gatwick, which will cost up to£3billion, does go on sale, City Airport can expect some competition from Manchester Airport Group.

City bosses already have a bid on the table for another airport. In March it made an undisclosed offer for Southend Airport, but there is believed to be interest from six other parties.