Overview of the Acquisition
AviAlliance, a prominent private airport investor and operator, has recently announced a significant acquisition of AGS Airports, which encompasses Aberdeen Airport (ABZ), Glasgow Airport (GLA) in Scotland, and Southampton Airport (SOU) in England. This acquisition from Ferrovial and Macquarie is valued at approximately £1.53 billion ($1.98 billion). The deal, pending regulatory approval, is anticipated to finalize in the first quarter of 2025.
Strategic Importance of AGS Airports
AGS Airports, established in 2014, operates these three strategic regional airports as a unified business entity. These airports play a crucial role in servicing significant and expanding regions within the United Kingdom. In 2023, Aberdeen Airport was ranked as the 16th busiest in the UK, handling about 2.3 million passengers. Glasgow Airport, being the ninth busiest, managed to accommodate approximately 7.4 million passengers. Meanwhile, Southampton Airport, located south of the border, ranked 22nd by handling just under 760,000 passengers.
AviAlliance’s Vision for AGS Airports
According to AviAlliance, the acquisition aligns with the company’s strategy to enhance its presence in the robust British air travel market. The company aims to leverage its extensive global expertise to develop these airports by enhancing air connectivity and improving passenger experiences, while also supporting local communities. AviAlliance, which is wholly owned by the Public Sector Pension Investment Board (PSP Investments) of Canada, has a proven track record in airport management that focuses on increasing traffic and advancing passenger services.
Future Prospects and Commitments
Gerhard Schroeder, Managing Director of AviAlliance, emphasized the company’s commitment to unlocking the full potential of Aberdeen, Glasgow, and Southampton Airports. This includes expanding route networks, enhancing passenger services, and implementing robust sustainability strategies. Additionally, Sandiren Curthan, Managing Director and Global Head of Infrastructure Investments at PSP Investments, highlighted the strategic fit of the airports within their infrastructure portfolio, noting the critical role these airports play in supporting economic growth in both Scotland and England.
Historical Context and Significance
The three airports were initially part of the British Airports Authority (BAA), which was a state-owned entity before its sale in 2006 to a consortium led by Spain’s Ferrovial. This sale was primarily due to competition laws that identified BAA’s near-monopoly status in the UK’s airport operations. This transition marked a significant shift in the management and operations of these airports, ultimately leading to their current ownership structure under AviAlliance.