BAA has confirmed it is to sell Gatwick airport for £1.51 billion to Global Infrastructure Partners (GIP), the owner of London City airport.
The deal comes a year after BAA’s Spanish owner Ferrovial put Gatwick up for sale, amid competition concerns about the operator’s market dominance.
BAA is currently involved in an appeal against a ruling by the Competition Commission that it should sell three of its airports — Gatwick and Stansted and one of either Edinburgh or Glasgow.
The company said today that proceeds from the sale of Gatwick will be used to repay part of its debt pile, which stood at £9.6 billion at the end of June.
Gatwick opened in 1958 and is the busiest single runway airport in the world, handling 32.2 million passengers in the year to September. The site, which employs around 2,500 people, is home to 80 airlines serving more than 200 destinations.
GIP is thought to have fended off a rival bid from a consortium including Manchester Airports Group and Borealis, a Canadian infrastructure fund.
The company took a 50 per cent stake in London City airport in 2006 before increasing this to 75 per cent last October. GIP’s other investments include the waste management firm Biffa and Great Yarmouth Port Company.
Agencies