Another northern airport is bought by AMP
DEAL BY PART OWNER OF NEWCASTLE MAY ATTRACT COMPETITION PROBE
THE Australian investment group which owns almost half of Newcastle Airport has bought another airport in the North.
AMP Capital, which took a 49% stake in Newcastle Airport in 2012, has become the outright owner of Leeds Bradford Airport after buying it from European investment group Bridgepoint Advisers and saying that it offers a “highly attractive investment and a great fit for AMP Capital’s global infrastructure platform”.
It is not known how the Leeds Bradford deal will affect Newcastle Airport, which is still 51% owned by the seven local authorities in Tyne and Wear, Northumberland and County Durham.
But it seems likely that a competition probe could take place on the deal, with one company potentially having a major stake in two Northern airports whose target markets have some crossover.
Former Newcastle Airport chief executive David Laws took over at Leeds Bradford in May, having worked for AMP in the interim period.
Mr Laws said he wanted to grow the Leeds airport and has since recruited aviation development director Chris Sanders, as well as other staff, from Newcastle.
Though theoretically serving a larger population area, Leeds Bradford is currently smaller than Newcastle Airport, with many people in Yorkshire choosing to fly instead from Manchester. Newcastle recorded 4.8m passengers in 2016 compared to Leeds Bradford’s 3.6m.
Newcastle Airport is currently embarking on a £20m investment programme backed by AMP that will see a new immigration area being developed, along with extensions to the departure lounge and a new baggage system.
Simon Ellis, European head of origination at AMP Capital, said: “With its strong underlying fundamentals including freehold ownership with well-invested infrastructure, a diversified airline mix and its catchment area in an economic hub of the North of England, Leeds Bradford Airport is a highly attractive investment and a great fit for AMP Capital’s global infrastructure platform.
“We believe there is a clear opportunity for performance enhancement through tailoring and improving the customer experience and working collaboratively with our key partners including airlines, government and local businesses. In addition, the airport serves the Yorkshire and the Humber region, one of the fastest-growing regions in the UK with a population growth of 6% since 2001 and there is also potential for further route development.
“AMP Capital’s heritage in transportation infrastructure investment and our experience of owning airports means we are well placed to develop the exciting opportunities presented by this investment.”