Airport sale grounded by stormy economic climate

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Airport sale grounded by stormy economic climate

Dec 21, 2008

By Kevin Feddy

MANCHESTER Airport Group has scrapped plans to sell Humberside Airport.

The group put Humberside on the market in April after a strategic review and said it had held talks with several potential buyers.

But in a statement MAG said it had decided that, given several positive developments at Humberside and the current economic climate, it would retain its 82.7 per cent majority stake.

Geoff Muirhead, chief executive of MAG, said: "When we began our strategic review, we recognised that Humberside Airport was a solid business and that everyone had done a fantastic job in retaining and attracting airlines as well as maintaining stable passenger numbers, particularly during recent times of significantly increased competition.

"In the last few months, Humberside Airport has attracted an increase in its heliport business, its KLM services continue to perform well, a new state-of-the-art perishables hub has opened and discussions are currently underway about further developments.

"Coupled with the backdrop of an economic downturn and the beginnings of a recession in the UK, we have decided not to sell Humberside Airport and will retain it as part of the group."

Humberside handles more than 500,000 passengers a year and serves 30 destinations across the UK and Europe. It employs around 730 people.

MAG is the second largest airports operator in the UK. It owns Bournemouth and East Midlands Airports as well as Manchester and Humberside, and is eyeing further takeovers, possibly including Gatwick, Glasgow and Edinburgh, which may be sold by BAA.

Humberside, which was acquired in June 1999 for £10m, is the smallest airport in MAG with revenues of £8.8m in the last financial year and underlying profits of £1.4m.

MAG has spent nearly £7m on improvements at Humberside since its takeover. Government forecasts indicate the airport will grow to handle around a million passengers a year by 2016.

Source: Manchester Evening News

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