Eurotunnel to bid for London City Airport

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Eurotunnel to bid for London City Airport

According to sources, Eurotunnel could participate in the bidding process for the London City Airport.

Eurotunnel aims to move beyond operating the concession on the Channel tunnel, which it has until 2086. According to sources, the company could participate by joining up with one of the consortia formed for the process.

We have recently reported that several groups were considering bidding for the airport:

In early November Global Infrastructure Partners (GIP) officially launched the bidding process to sell the London City Airport. Global Infrastructure Partners (GIP) owns a 75% stake in the airport while the remaining 25% stake is owned by Oaktree Capital.

GIP has hired Credit Suisse to handle the disposal of the airport. The transaction could be closed for an amount of £2 billion (US$3.03 billion).

London City Airport is located in the Royal Docks in the London Borough of Newham, some 11 km east of the City of London. It has a single 1,500 m long runway and due to its proximity to the City, mainly serves business travellers.

In 2014, London City served 3.6 million passengers, an 8% increase compared with 2013 and a record total for the airport. It was the fifth busiest airport in passengers and aircraft movements serving the London area after Heathrow, Gatwick, Stansted and Luton and the 15th busiest in the UK. A total of 10 airlines operate flights to 50 European destinations, as well as a New York service.

GIP bougth its stake in the east London airport from Irish businessman Dermot Desmond for £750 million in 2006.

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