London City Airport up for sale for £2bn

US fund Global Infrastructure Partners (GIP) now own the business, along with stakes in London Gatwick and Edinburgh airports but they have decided to sell City in a bid to capitalise on particularly high demand for air travel.

GIP also owns 42% of Gatwick Airport and Edinburgh Airport.

GIP bought the airport from Irish businessman Dermot Desmond in 2006.

“The market demand for quality airports is very high”, Michael McGhee, director for transport at GIP told FT.

The airport, just seven miles from the City, is a favourite of workers from the financial centre, as well as those in even closer by Canary Wharf.

“Meanwhile it is business as usual at the airport – the sale process will have no impact on the airport’s operation or plans for growth”.

The airport handles planes that are flying to European destinations such as Amsterdam, Dublin, Madrid and Florence.

John Stewart, the chair of HACAN East, said, “When Crossrail opens Docklands and the City of London, the key business markets London City serves, will be within half an hour of Heathrow”.

London City has seen passenger numbers more than double from 2 million in 2005 to an expected 4.1 million this year.

The airport has been planning a £200m expansion to raise capacity to six million passengers by 2023.

These plans were passed by Newham Council in February, but blocked by London mayor Boris Johnson the following month due to noise concerns. The airport is appealing the decision.