Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

CityJet and Flybe join BA in threat to pull out of City airport if charges are raised

The airport was put up for sale last August and is understood to have attracted attention from five investors

Joanna Bourke
Wednesday 17 February 2016 01:38 GMT
Comments
London City Airport was put up for sale last August
London City Airport was put up for sale last August (Getty)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

CityJet and Flybe have joined British Airways in threatening to pull out of City airport, if new owners raise airport charges.

The airport has been owned by the private equity firm Global Infrastructure Partners since 2006, but was put up for sale last August and is understood to have attracted attention from five investors. The deadline for final bids is this Friday. But the airlines, which together account for 70 per cent of City airport’s passengers, are worried that a price tag of £2bn will mean any new buyer hikes landing charges in an attempt to recover some of the purchase cost. “This brings into question the long-term sustainability of airline operations at London City airport,” said Pat Byrne, executive chairman of CityJet.

The asking price, dubbed “foolish” by Willie Walsh, the boss of BA’s parent International Airlines Group, represents a multiple of 44 times London City’s underlying earnings in 2014.

The Hong Kong tycoon Li Ka-shing, who owns Superdrug and mobile group Three, as well as a consortium including the Kuwait Investment Authority, Borealis, Hermes and the Ontario Teachers’ Pension Plan, are understood to be among suitors for the airport.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in