Blackpool International Airport sold to Balfour Beatty for £14M

10:25am Tuesday 6th May 2008

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Blackpool International Airport has been sold to construction firm Balfour Beatty in a £14M deal.

Balfour Beatty, the international engineering, construction, services and investment group, announced this morning that Regional and City Airports (RCA), its specialist airport investment and development group, has agreed to acquire 95 per cent of Blackpool International Airport for £14 million in cash.

The airport is being sold by Mar Properties, a large Northern Ireland-based property developer, and the transaction is subject to receiving the approval of the remaining minority shareholder, Blackpool Borough Council.

The council is supportive of the transaction, and this approval is expected to be received by 9 May 2008.

The airport's current key customers include Jet2.com, Ryanair and Manx2.com and it provides an established base to a range of other air carriers and related aeronautical businesses.

The airport is forecast to handle about half a million passengers in 2008, flying 12 routes to the UK, Ireland, Isle of Man and mainland European destinations.

Commenting today, Balfour Beatty's Chief Executive, Ian Tyler, said: "Blackpool International is a well-located airport with the potential to become a thriving international gateway to Lancashire and Cumbria.

"We will work together with the airlines and our local partners to help increase its penetration within this core catchment area and to play its part in attracting inbound visitors to the region.

"We believe that our approach will deliver significant, sustained growth in passenger traffic at the airport and will generate important economic benefits for it and for Blackpool.

"Our aim is to develop Blackpool to be the airport of choice for residents, businesses and visitors of Lancashire and Cumbria."

Councillor Peter Callow, leader, Blackpool Council, which owns a five per cent stake in the airport, said: "This is absolutely great news for Blackpool.

"The airport has developed rapidly in recent years and I am confident that Balfour Beatty will be able to take it to an even higher level.

"I know that they have very exciting plans for the future which will see expansion of both flights and facilities.

"Clearly they have the contacts and capacity to deliver these aspirations which should mean growth for the whole area and more jobs for local people."

RCA acquired Exeter International Airport for £60 million in January 2007.

Data from the Civil Aviation Authority (CAA) shows that Exeter is one of the fastest growing airports in the UK and the strongest growing airport in the South West, handling just over one million arriving and departing passengers in 2007.

Balfour Beatty Capital is an experienced investor in infrastructure, having raised over £7 billion of funding for its 30 privately-financed projects in which it has over £250 million of committed and invested equity.

Its professional and technical services division has played a key role in the development programmes at Heathrow, Gatwick and the BAA Scottish Airports.

Its construction and services subsidiaries have undertaken major airport projects at Heathrow, Gatwick, Stansted, Glasgow, Edinburgh, Hong Kong, Dubai and Miami.