Calls to delay Luton’s expansion plans after news of airport sale by Abertis
Calls to delay planning permission for Luton airport’s expansion have come following news that the airport may be sold off by its Spanish owner, the infrastructure group, Abertis. Protesters against the expansion of Luton argue any plans should be put on hold in the wake of a potential sale. Andrew Lambourne of HALE – Hertfordshire Against Luton Expansion – said: “In terms of Luton airport expansion the timing of this news couldn’t be worse, since it clearly threatens the investment on which their hugely expensive expansion plans are based. “The airport has not yet secured its planning permission – and given the significant grounds for objection, this is not going to be an easy ride. ” HALE said that a postponement of the planning application may well be in the best interests of Luton. “The last thing Luton Borough Council would want is for them to overstretch and then go bust.”
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Calls to delay Luton’s expansion over news of airport sale
25.2.2013 (TravelMole)
Calls to delay planning permission for Luton airport’s expansion have come following news that the airport may be sold off by its Spanish owner.
The infrastructure group, Abertis, has appointed City and AZ Capital to look into the sale of Luton, Belfast and Cardiff airports, reports the Sunday Times.
But protesters against the expansion of Luton argue any plans should be put on hold in the wake of a potential sale.
Andrew Lambourne of HALE – Hertfordshire Against Luton Expansion – said: “In terms of Luton airport expansion the timing of this news couldn’t be worse, since it clearly threatens the investment on which their hugely expensive expansion plans are based.
“The airport has not yet secured its planning permission – and given the significant grounds for objection, this is not going to be an easy ride.
“In a climate where many business are consolidating rather than taking risks, particularly in an airport business so dependent on the future price of oil and on decisions by airlines who will be shopping around for the
cheapest landing fees, a postponement of the planning application may well be in the best interests of Luton.
“The last thing Luton Borough Council would want is for them to overstretch and then go bust.”
Abertis was caught in a dispute with Luton council last year when the council threatened to terminate its contract which runs until 2031 because it did not believe the airport site was being developed.
Eventually all parties agreed to a £100million revamp.
The Welsh government is reported to be close to signing a deal to buy Cardiff from the Spanish firm.
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Luton airport operations “up for sale”
Spanish infrastructure company Abertis is studying the possible sale of its airports division as part of its diversification strategy, Chief Executive Francisco Reynes said on Tuesday according to Reuters. London Luton Airport Operations Ltd (LLAOL), the company which operates Luton Airport, is 90% owned by Abertis Infrastructuras S.A.
Abertis has asked Citigroup and AZ Capital to study options for its airports business, and is reportedly ”open to any option”, which could mean that part or all of the portfolio is sold. Abertis owns Cardiff and Belfast airports, though its interest in Luton is only in the operating concession, since the airport itself is owned by Luton Borough Council.
Andrew Lambourne of HALE said “In terms of Luton Airport expansion the timing of this news couldn’t be worse, since it clearly threatens the investment on which their hugely expensive plans are based. LLAOL has not yet secured its planning permission – and given the significant grounds for objection which range from apparent contravention of the local planning permissions and noise restrictions to huge concerns over public health and safety, plus the unmodelled impacts on local road and rail infrastructure, this is not going to be an easy ride. And of course there is still uncertainty over whether the application is going to be called in, as it should be, for proper consideration as a national infrastructure project.”
“In a climate where many business are consolidating rather than taking risks, particularly in an airport business so dependent on the future price of oil and on decisions by airlines who will be shopping around for the cheapest landing fees, a postponement of the planning application may well be in the best interests of Luton. The last thing Luton Borough Council would want is for the airport operators to overstretch and then go bust.” he continued.
Last year the Council initially announced that it would be terminating the operating concession and looking for a new operator prepared to invest in growth. The signs are that the hesitancy of LLAOL/Abertis to invest was based on the uncertainty over whether Abertis would continue to see value in its airport portfolio.
http://www.hale.uk.net/category/news/
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Earlier
Abertis considers sale of UK airports – Luton, Cardiff and Belfast International
Date added: February 25, 2013
Abertis, the Spanish owner of Luton, Cardiff and Belfast International airports, may sell them. According to The Sunday Times, Abertis has decided to sell the 3 airports as part of a review of its €1 billion transport division, and Citi and AZ Capital have been appointed to review the division. Luton airport has been surrounded by controversy over its development plans with the local council opposing Abertis’ plans for its development. The Welsh government is reported to be on the verge of buying Cardiff airport, which has had a large drop in traffic during the past few years. Albertis’ airport assets in Bolivia were nationalised by President Evo Morales last week, and it has lost money in Spain in recent years. Campaigners at Luton said the timing of the sale was unfortunate, with the airport’s current planning application – for which planning permission has not been secured. The sale threatens the investment on which the airport’s hugely expensive expansion plans are based.
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