MAG to review its stake in Humberside Airport
The Manchester Airports Group (MAG), the UK’s second largest airports operator, has today announced it is examining its 82.7% majority shareholding in Humberside Airport.
Humberside Airport has maintained annual passenger volumes of approximately 500,000 during a period of intense competition and has broadened its aviation activities to include scheduled and charter passenger services, freight, North Sea gas rig services, aircraft maintenance, pilot training and a variety of other specialised niches.
MAG now believes that in order to secure the best long-term future for Humberside Airport that all options, including a possible transfer of ownership, should be considered.
This would allow MAG to concentrate on its strategy of maximising the growth opportunities offered by the larger Manchester, East Midlands and Bournemouth Airports.
Employees at Humberside Airport and North Lincolnshire Council, the airport’s minority shareholder were informed of the Group’s decision today by MAG Chief Executive, Geoff Muirhead CBE.
Simon Driver, Chief Executive of North Lincolnshire Council said of the decision:"North Lincolnshire Council welcomes the long-term relationship with Manchester Airports Group and recognises that now is the time to look to the future. We will build on the success of the airport for the benefit of North Lincolnshire and the wider region.
"The airport has real potential and the council, as a shareholder, will look to maximise the development of the airport in the future. The council has maintained its shareholding in the airport since 1996.
"In light of the news from Manchester Airports Group, the council now needs to consider its position. It is inappropriate to comment further at this stage."
Commenting on the move, Geoff Muirhead CBE said: “Humberside Airport is a solid business but the attention needed to maximise its full potential may not fit easily with the Group’s emerging strategy.
“The Humberside Airport team has done a fantastic job retaining and attracting airlines and maintaining stable passenger numbers, particularly during the last few years when competition has increased significantly.”
Since purchasing its majority stake in Humberside Airport in 1999 for £10 million, MAG has invested nearly £7 million in capital expenditure to improve and develop the airport infrastructure.
Routes currently served from Humberside Airport include Air France/KLM’s worldwide hub at Amsterdam, many of the popular holiday destinations in Europe, the Canaries, Lapland, the Channel Islands and domestic services to Scotland.
Humberside Airport has a core catchment area of over 1 million people within 45 minutes driving time and serves the major towns and cities of Hull, Grimsby/Cleethorpes, Scunthorpe and Lincoln.
MAG’s other three airports, Manchester, East Midlands and Bournemouth, together handle around 28 million passengers every year and are unique within their catchment area in terms of destinations, airlines, facilities and proximity to the main surface transport infrastructure.
The review and any future decisions about MAG’s stake in Humberside Airport are expected to be completed by the end of 2008.
Published on: 25/04/2008 15:10:52