City Airport's owners still keen on Gatwick

By Rob Virtue on December 11, 2008 10:11 AM |

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CITY Airport’s interest in buying Gatwick remains strong with the bidding process due to start next month.

Global Infrastructure Partners, the owners of the Docklands airfield, is keen on expanding and is said to be keeping a close eye on the airport, which was put up for sale in September.

A source close to the bidding process said: “We can certainly say London City Airport has its hat firmly in the ring.�?

Gatwick’s owner, Ferrovial, is reported to have set a deadline of January 19 for indicative bids, and is hoping the airport will go for up to £2bn.

It is likely to be a heated contest with strong bidding groups forming. These include one made up of Canadian investors and another led by Manchester Airport.

Former British Airways boss Bob Ayling has been joined a Citigroup-led consortium also planning a bid for the Sussex airport

However, the source said the price could drop due to the credit crunch.

He added: “All the interested groups are playing a waiting game because of the financial situation. People are flying less and that will affect the price.�?

GIP, however, is also believed to be keen on Stansted, another of Ferrovial’s airports.

It may switch its attention to the Essex airport if Ferrovial is also forced by the Competitions Commission to sell it.

The commission is due to make its final decision on the anti-competitiveness of London’s airports early next year.

Meanwhile, City Airport is expecting another big Christmas despite the credit crunch.

Airport spokeswoman Rupa Haria said: “December is usually a busy month for us with leisure travellers and skiers taking advantage of our routes, so we are expecting good passenger numbers.

“Our figures have stayed level on last year so we should get the same number of passengers as last year.�?

The airport is also celebrating being awarded best UK airport in the Buying Business Travel awards last week.