Vancouver airport group in hunt to buy London's Gatwick
VANCOUVER - The Vancouver International Airport Authority is part of a $3.1-billion bid to purchase Gatwick Airport, according to reports.
YVR Airport Services Ltd., a subsidiary of the Vancouver Airport Authority owned jointly by the airport authority and the infrastructure division of U.S. banking giant Citibank, is putting in the bid for London's second-largest airport, The Times of London reported Sunday.
If successful, the move would catapult YVRAS into the big leagues of airport management, according to industry experts.
"It would be a significant step forward into a very, very large hub airport," said Rick Erickson, managing director of RP Erickson and Associates, a Calgary-based aviation consulting group. "This will put them in a new league and it may open other substantial doors for them in the future."
YVRAS reported $440 million in revenue last year and manages 18 airports around the world, mostly in the Western Hemisphere, including facilities in Chile, the Bahamas and Jamaica, It also manages smaller airports in the B.C. cities of Cranbrook, Fort St. John and Kamloops as well as Moncton, N.B.
In 2006, it partnered with Dutch company ABN Amro for an unsuccessful bid to run London's City Airport.
In May, it partnered with Citibank and, just last month, backed by the bank's considerable financial heft, it won a 99-year-lease values at $2.52-billion US to operate Chicago's Midway Airport.
But Gatwick, by far, would be the largest gem in the YVRAS airport empire, said Erickson.
About 35 million passengers pass through the London airport's terminals annually - double the traffic through Vancouver airport last year.
Its acquisition would open doors for future management contracts with airports in Asia or the Middle East, said Erickson, making it well-poised to capitalize on a trend that began 10 to 15 years ago when governments began to divest airports and airport management to the private sector.
"With a great track record, in three or five years, there's no doubt they can go after other major airports," said Erickson, who added the well-managed Vancouver International Airport is one of the stars in the airport world and makes for a great calling card.
YVRAS officials refused to confirm the bid Sunday.
In an e-mail to The Vancouver Province, CEO George Casey said the "primary focus of Vancouver Airport Services' immediate efforts is on operating and developing Chicago Midway Airport," and that it "continues to monitor other opportunities, but has no immediate additional plans."
Gatwick owner BAA put the London airport on sale last month following a ruling ordering them to shed three of its seven U.K. airports for competition purposes.
Other potential bidders include Frankfurt Airport operator Fraport, German construction firm Hochtief, German airlines Lufthansa and Global Infrastructure Partners, a consortium made up of Credit Suisse and General Electric Co., which bought London's City Airport two years ago for $1.5 billion US.
Erickson said the fact that the bid is being made during today's struggling economic times might not be a big factor as airports, which have near-monopolies within their geographic areas, have proven to be consistent, attractive long-term investments.
http://www.canada.com/topics/news/national/story.html?id=8a7f3f1c-0481-4aea-8b68-2411363ddc26