p18 pink sep12 8/9/08 18:45 Page 18
City & finance
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Ferrovial sells
Belfast City airport
for £132.5m
SPANISH investor Ferrovial has sold Belfast
City airport to an investment fund for £132.5m –
three times the amount it was bought for five
years ago.
The deal has raised confidence that the BAA
parent will generate a healthy return if it is
forced to sell Gatwick and/or Stansted and
Glasgow or Edinburgh airports next year.
Last month a Competition Commission
preliminary report warned that BAA’s monopoly Flybe in hunt for
of airports in the south-east and Scotland might
have to be broken up.
Ferrovial paid £43m for Belfast City airport in
2003. Its sale to ABN Amro’s Global Infrastruc-
airline disposals
ture fund is expected to be completed by the end
of this month.
Chris Gray.
Rutter added: “We remain an actively acquisi-
Brian Ambrose, chief executive of the airport, FLYBE is poised to pounce on any European tional organisation.”
said the sale fitted with Ferrovial’s strategy to regional carrier as it prepares to use the The airline’s pre-tax profits were up £20m, a
focus its UK airport business within the BAA downturn to make more acquisitions. rise of 129% on the previous year, and turnover
group. Chief operating officer Mike Rutter said it increased by 46% to £535.9m. The upwards
“The sale does not affect the day-to-day would look at any carrier that fitted its model of trend continued in the three months from April,
business of the Belfast airport and we look short-haul flights from regional airports. when pre-tax profits were 14% up to £12.2m.
forward to continuing to serve both our business Rutter was speaking after Flybe unveiled The 2007-08 results cover the period when it
partners and our customers. We also look pre-tax profits of £35.4m for the year to the end took over BA’s regional service BA Connect.
forward to continued investment in the airport of March. Rutter said it had knocked £40m off BA
facilities,” he said. He hinted strongly that Flybe would like to ac- Connect’s £43m costs by integrating it with
Belfast City airport handled 2.2 million quire BMI’s regional operation if the airline had Flybe’s no-frills model and closing its offices.
customers last year, a figure projected to rise to a change of ownership, which is widely expected. Its financial performance was also boosted by
2.7 million in 2008. But he said it would be interested in any a fuel-efficient fleet, which helped bring fuel
The airport offers UK and European routes on independent regional operator or any legacy costs to 24% of total costs.
four airlines, including Flybe and BMI. Flybe’s carrier’s regional operations if they became Rutter said it had hedged between 45% and
chief commercial officer Mike Rutter warned the available as the downturn forced airlines to 55% of fuel for this year, and had also hedged US
new owners against trying to start long-haul merge or dispose of less profitable services. dollars at a favourable rate that would continue
services, which he said would duplicate flights Flybe is not in any active acquisition talks, but to keep down fuel costs.
offered at Belfast International airport.
Connect purchase aids carrier’s network
FLYBE plans to increase passenger numbers this more growth would come by linking airports
year by “joining the dots” in its network. already in its network that now did not have
It saw an 18% increase in passenger numbers services connecting them.
in the year to the end of March, helped by the The strategy could also bring more destina-
acquisition of BA Connect. tions to Leeds, Cardiff and Newcastle.
Passenger numbers will be boosted further Rutter added that most of Flybe’s traffic
when a franchise operation with Scottish continued to come from the business, and visiting
alsh
carrier Loganair starts operations next month. friends and relations markets, both of which
e W
Mik Chief commercial officer Mike Rutter said were resilient during economic downturns.
18 12.09.2008
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