London Gatwick Airport to be sold for bargain price
London Gatwick Airport to be sold for bargain price - Gatwick,Finance Airport News
Airport news for Gatwick,Finance on 04/05/2009.
BAA are being hit hard by the British recession. With less people venturing abroad for their two weeks in the sun, the airport group has been losing money by the plane load.
Owned by insolvent Spanish construction company Ferrovial, BAA have already decided to sell London's Stansted airport and either Edinburgh or Glasgow airports in order to combat their cash crisis.
However, selling the airports isn’t as easy as anticipated as passenger numbers have dropped more than 17% in Gatwick during the last couple of months, which is significantly more than other British airports such as Heathrow and Birmingham.
Although there is generally a lot of interest when airports come on the market, bidders seem reluctant to buy at the moment. As a source connected to the bidders commented: “"When the passenger numbers go down the price doesn't go up... Market conditions for BAA aren't the best for a sale.”
With time running out for prospective bidders, it seems that BAA might not manage to get prices to soar before they have to sell.