Sale of London City Airport launched

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Sale of London City Airport launched

According to sources, Global Infrastructure Partners (GIP) has officially launched the bidding process to sell the London City Airport.

The transaction could be closed for an amount of £2 billion (US$3.1 billion).

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.

According to sources, a total of three groups are considering bidding for the airport. They are the following:

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 (US$1.16 billion) in 2006.

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