Virgin Atlantic and easyJet Pull out of Race for Gatwick Airport Purchase

Virgin Atlantic and easyJet have now pulled out of the race to buy Gatwick Airport from the British Airports Authority. The airlines were hoping to bring in other financial backers in order to mount a bid, but they will now offer expertise to one of the other bidders instead.

A Virgin Atlantic spokesman was reported from the Times to say that they are focused on offering their experience to aid another bidder. They are not seeking to put their own money into the purchase, he continued, but they have valuable experience with customers, which is what the new Gatwick Airport owners are going to need.

There are only 2 parties that are definitely confirmed to be in the bidding for the airport, which has been estimated to be valued at about £2 billion. One of these is Hochteif AirPort, a division of Hochtief, which is a German engineering firm. The other is Citigate Infrastructure, which is a consortium that includes Citigroup, Vancouver Airports, and John Hancock, a US financial institution.

Hochtief AirPort already has holdings in airports located in Sydney, Tirana, Dusseldorf, Hamburg, Athens, and Budapest; whereas, Citigate Infrastructure completed a deal to purchase the Midway Airport during the year for about £1.7 billion. Also, Manchester Airports Group has been rumored to be preparing for a bid, but they have yet to complete the process.

The British Airports Authority is hoping to secure as much as £2.5 billion for Gatwick Airport. However, it is believed by experts that the tough economic environment may decrease the purchase to about £1.8 billion.

Visit www.easyjet.com -or- www.virgin-atlantic.com for more information about these airlines.

Get more about the airport at: www.gatwickairport.com