Buyer for Belfast City Airport to be announced

The sale of Belfast City Airport by its cash-strapped Canadian owner waspoised to be announced tonight.

The sale of Belfast City Airport by its cash-strapped Canadian owner waspoised to be announced tonight.

Spanish engineering and construction giant Ferrovial is due to be namedtomorrow as the winner of a nine-month long fight to secure the regional airporton the edge of east Belfast.

Regional jet manufacturer Bombardier Aerospace, which has owned the airportsince buying neighbouring Shorts Aerospace from the Government in 1989, has hadthe airport on the market since last September.

Bombardier has been involved in months of negotiations with up to fivecompanies, including TBI, owners of the rival Belfast International Airport.

READ MORE

Ferrovial edged ahead of the pack in recent weeks and recently Bombardier'sCanadian based president and chief executive Paul Tellier let the cat out of thebag when he indicated a sale would be completed before the end of the month andthat it would probably go to a buyer with "Spanish elements".

Ferrovial has interests in 11 airports around the world and is bidding forstakes in four others.

But to date its only UK holding is a stake in Bristol airport.

It is not known whether the £40 Stg million price tag put on Belfast City byBombardier has been met.

A Bombardier spokesman in Belfast would only say tonight: "We are indiscussions with a potential purchaser." Everything was confidential until thedeal was announced.

British government sources in Belfast said they were poised for the announcement ofthe sale tomorrow.

The Canadian aerospace giant decided to sell off the profit-making airportlast September as part of a major overhaul of its operations in the wake of theSeptember 11 terrorist attacks and global economic downturn which sent theaviation industry into a nose dive.

Bombardier last year reported losses of over £270 million Stg and engaged in amajor restructuring which has seen the axing of thousands of jobs and sale ofassets.

It says it no longer sees the Belfast airport as a "core part of its businessstrategy".

Only last year a new terminal opened at the airport after Bombardier spent £22 Stgmillion up-grading facilities.

Three main airlines use the airport - bmi British Midland, British AirwaysCitiExpress and flbe - serving 18 destinations in the UK.

A new twice daily service to Dublin opens in mid-June, operated by Aer Arann Express.

This year approximately 1.8 million passengers are expected to use the airportwhere around 800 people work - 360 employed directly and 450 by airlines andother concerns.

Ferrovial has existing transportation links with Ireland.

In March one of its subsidiaries was named as the leader of a consortiumgranted the concession for the first toll motorway in the Republic to befunded, constructed and operated by the private sector.

The 400 million euro project is part of the corridor linking Dublin tothe north west and is due to be completed in 2006.

It has also been shortlisted for the Dundalk Western By-Pass on the mainBelfast to Dublin road.

PA