Citigroup And Vancouver Airports Joined Forces

Posted on 09. Dec, 2011 by in News

Gatwick is up for bidding and one of its bidders is the Vancouver Airports Authority. They joined forces with the American banking giant, the infrastructure arm of Citigroup. This is an effort taken by the group so that they have bigger chances in winning the bidding for the London’s Gatwick Airport. This joint group is expected to bid an estimated amount of $3 billion and they will soon publicize it in the coming weeks.

Selling the Gatwick Airport was encouraged by the British Competition Commission to be accomplished by the owners of the Gatwick Airport, British Airports Authority. They were advised to sell three of its seven airports to break its dominance over the aviation industry.

There are other bids that have already been announced. These groups are the Virgin Atlantic Airways, Hochtief AG (a German construction company), Fraport AG (the operator of Frankfurt airport), RREEF Alternative Investments (the infrastructure arm of Deutsche Bank AG) and Manchester Airports Group

Gatwick is known as the second biggest airport in UK and it is the worldwide it is the busiest single-runway airport. They cater to over 35 million travellers a year. The chief executive of the British Airports Authority, Colin Matthews, is disheartened of having to sell the airport as it has long played an important and valuable part of BAA.

This is not the first time the bidding group has joined forces. The Citi Infrastructure Investors which is a unit of Citigroup was handed a 50% stake in Vancouver Airport Services. The latter monitors eighteen airports across different countries earlier this year. Last year, the Vancouver Airports Authority was given a contract costing an amount of $2.5 billion to control and further develop the Chicago’s Midway Airport. This deal was carried out in agreement with the two groups, Citigroup and John Hancock Life Insurance.

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