English Operator Admits Interest In Scotlands Biggest Airports (from The Herald )

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English operator admits interest in Scotland’s biggest airports

STEWART PATERSON

May 06 2008

Comment | Read Comments (6)

One of Scotland's two biggest airports could be taken over by a rival operator after its chief executive said it would be interested in any British Airports Authority (BAA) sell-off.

Manchester Airports Group, the second biggest in Britain, said that if BAA, owned by Spanish firm Ferrovial, was forced to sell one or more of its seven airports, it could be a potential buyer.

The Competition Commission has said BAA's airport ownership could be anti- competitive. A report due in August could require it to sell off at least one airport.

Gatwick is believed to the most likely of the three London airports to be earmarked for sale. The future of Glasgow is also uncertain because of its close proximity to Edinburgh, which is now Scotland's busiest airport.

Aberdeen and Southampton airports, with a more regional focus, are believed unlikely to be part of any forced sell-off.

Some airlines, concerned about charges, have called for the break-up of the BAA group. The Competition Commission could impose that later this year.

Geoff Muirhead, chief executive of Manchester Airports Group, said the firm would consider buying any parts of BAA that were put up for sale.

However, the current challenging economic conditions could make funding a deal a difficult proposition, he added.

He said: "We'd be interested in any assets that come up, on the premise that we feel we could improve the performance of the group on the back of it, at a price that was sensible. I think the price might reflect the difficulties in the financial markets at the moment."

BAA was referred to the Competition Commission by the Office of Fair Trading after it decided the current arrangement did not give good value to travellers.

Manchester Airports Group owns four airports, handling around 28 million passengers a year. It is in charge of Manchester, East Midlands, Bournemouth and Humberside airports.

A spokesman for BAA Scotland said it had no comment to make on Mr Muirhead's remarks.

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Posted by: Donald Anderson, glasgow on 7:11am Tue 6 May 08

Nationalise the airports from Holyrood and bring back the de-nationlaised Caledonian Airways.

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Posted by: Doug Blaney, Glasgow on 7:44am Tue 6 May 08

Donald Anderson wrote:
Nationalise the airports from Holyrood and bring back the de-nationlaised Caledonian Airways.

Grow up.

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Posted by: Edward, Glasgow on 11:16am Tue 6 May 08

Given the success of Manchester Airport, it could only be in Scotland's favour if their management team were to take over whichever of BAA's central-belt airports is put on the market.

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Posted by: Mike MacKinnon on 11:42am Tue 6 May 08

Out the Scottish airports into a Scottish trust and have them run as a business, the profits of which go back to the Scottish government.

You know it makes sense! Why move from one English owner to another? Let Scots own their own assets!

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Posted by: SunnyJhim, South of the River on 1:21pm Tue 6 May 08

[quote][bold]Mike MacKinnon[/bold] wrote: Out the Scottish airports into a Scottish trust and have them run as a business, the profits of which go back to the Scottish government. You know it makes sense! Why move from one English owner to another? Let Scots own their own assets![/quote] BAA is actually owned by Spanish conglomerate, Ferrovial. As a commited Scottish nationalist, I see no problem in Scottish companies being acquired and run from outwith the country; to paraphrase, "that's the nature of globalised open market economics, stoopid". However, there is a strong case for key components of our national infrastructure and assets - such as international airports - being operated in the 'national interest' or at least being administered in such a way that the strategic functioning of these assets compliments and enhances our competitive advantage at a national (pan-Scotland) level. I would like to hear from just one Scottish politician, academic, economist or economic development professional who believes this is currently the case. Just one. Overseas investors and domestic, globally ambitious companies put huge emphasis in transport connectivity to the European and global market. If Scotland was my dictatorship :-) I would dedicate my term in power to transforming Scotland's connectivity domestically, to the rest of the UK, to mainland Europe and 'the rest of the world'. That's what I'd do. I would treat transport connectivity as THE flagship project area where a governement could TRULY leave its mark in a big, unprecedented, public way. Simple economic management competence may have become the by-word for UK-based governements seeking to earn their place in history (and to secure a second term in governement regardless of what is ACTUALLY achieved). However, rather than trying to tinker with market economics, a governement of REAL vision could stamp its credentials by contributing a 'grande projet' a la Mitterand...but this time with a degree of functionality! Make transport the priority and this would be an area of government intervention every strata of the population would benefit from - business to pleasure, work to the environement, tourism to necessity. Expensive? Probably. Worth it? Definitely.

Mike MacKinnon wrote:
Out the Scottish airports into a Scottish trust and have them run as a business, the profits of which go back to the Scottish government. You know it makes sense! Why move from one English owner to another? Let Scots own their own assets!

BAA is actually owned by Spanish conglomerate, Ferrovial. As a commited Scottish nationalist, I see no problem in Scottish companies being acquired and run from outwith the country; to paraphrase, "that's the nature of globalised open market economics, stoopid".

However, there is a strong case for key components of our national infrastructure and assets - such as international airports - being operated in the 'national interest' or at least being administered in such a way that the strategic functioning of these assets compliments and enhances our competitive advantage at a national (pan-Scotland) level. I would like to hear from just one Scottish politician, academic, economist or economic development professional who believes this is currently the case. Just one.

Overseas investors and domestic, globally ambitious companies put huge emphasis in transport connectivity to the European and global market. If Scotland was my dictatorship :-) I would dedicate my term in power to transforming Scotland's connectivity domestically, to the rest of the UK, to mainland Europe and 'the rest of the world'. That's what I'd do. I would treat transport connectivity as THE flagship project area where a governement could TRULY leave its mark in a big, unprecedented, public way. Simple economic management competence may have become the by-word for UK-based governements seeking to earn their place in history (and to secure a second term in governement regardless of what is ACTUALLY achieved). However, rather than trying to tinker with market economics, a governement of REAL vision could stamp its credentials by contributing a 'grande projet' a la Mitterand...but this time with a degree of functionality!

Make transport the priority and this would be an area of government intervention every strata of the population would benefit from - business to pleasure, work to the environement, tourism to necessity.

Expensive? Probably. Worth it? Definitely.

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Posted by: JBlackley, Florida on 6:12pm Wed 7 May 08

SunnyJhim, I don't agree with your point of view but I do want to thank you for a coherent explanation of it. A pleasure to read and increasingly rare in the Herald's comments column.

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