London City Airport
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- 1508m x 46m
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- Air France
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All Nippon Airways
KLM Royal Dutch Airlines
London City Airport serves the City of London and is a major business aviation facility in London. London City serves mainly the financial district in London and is located on a former Docklands site three miles from Canary Wharf and six miles from the City of London. The only airport actually within London, London City is the fifth-largest airport serving the city and its operations are restricted to STOL (Short Take Off and Landing) aircraft. The airport serves over 30 business centres across Europe and North America and a small number of leisure destinations in Europe. The airport is currently home to 10 airlines flying to 42 destinations across Europe, as well as a twice daily New York service. In 2012 3.2 million passengers were expected to travel through the airport.
Location of London City Airport, United Kingdom
Ground Handlers servicing London City Airport
425 total articles
21 total articles
British band The Jam’s debut single included the lyrics: “In the city, there’s a thousand things I want to say to you… In the city there’s a thousand faces all shining bright, and those golden faces are under 25”.
London’s City Airport is no longer growing with the youthful energy captured by The Jam. Indeed, it turned 25 last year, but it has matured into a successful airport with an increasingly diversified route portfolio. Business routes remain very important, but you are now also likely to find business people there looking to recapture their lost youth in one of the several leisure destinations served.
In London City, there might not be a thousand things to say, but it does reflect a number of key trends and issues in European aviation today: airline consolidation, the battle between the alliances, EU liberalisation, capacity constraints, the importance of high yield passengers, the development of surface infrastructure and the shift to new generation aircraft technology are all evident at the airport.
The only shining bright faces that are missing are the low-cost carriers.
The economic portents were not good as delegates congregated for the 22nd ACI Europe General Assembly, Congress and Exhibition in Madrid on 20-Jun-2012 but the organisers neatly sidestepped what could have led to a depressing Congress by largely focusing instead on measures to keep the passenger happy and on improving airport-airline relations. Some more of the issues raised are reported here.
Air France is undertaking a significant shake-up of its short and medium-haul operations as part of its Transform 2015 plan, but the Irish regional unit CityJet appears to be spared from the cost-cutting brooms after it initiated a profound restructuring in Jan-2011. CityJet, which comprises the Irish airline CityJet and the Belgian regional carrier VLM, trimmed its workforce, cut costs, increased productivity and streamlined its network and is now in better shape than some of its French peers in the Air France Group. Air France’s short and medium-haul operations amassed EUR700 million losses in 2011. But its parent company Air France-KLM Group, which is looking to reduce its massive EUR6 billion debt, could also opt to divest the airline to generate cash.
While CityJet’s bottom line has improved, it is not yet delivering strong profits and competition at its main hub in London City Airport is intensifying. British Airways has been growing strongly at the small airport in the London Docklands in recent years, expanding its range of routes to European destinations and adding an innovative service to New York JFK. And it could be planning to expand this.
BAA announced it has agreed to sell its 100% interest in Edinburgh Airport Ltd to Global Infrastructure Partners (GIP) for a cash consideration of GBP807.2 million, with the sale approved by the UK Competition Commission. The sale price is payable in full at closing, expected by the end of May-2012.
Some members of the public were incredulous last year after Qantas announced it would cut its London capacity by over a third in Mar-2012, months before the summer 2012 Olympic Games being held in London. They saw the Games presenting a large traffic opportunity and thought Qantas should wait for the Olympics to pass before reducing London capacity. But in fact the Olympic Games or any sporting event when held in a large city present little uplift. While leisure demand increases, corporate traffic tends to whittle.
British Airways and Virgin Atlantic, some of the most exposed to London, expect no notable uplift from the Olympics. During the 2008 Olympic Games in Beijing, airlines recorded traffic – and financial – losses as security measures stunted growth.
The US-based Global Infrastructure Partners (GIP) stated in Dec-2011 it is raising funds to expand its airport portfolio in 2012. Senior partner Michael McGhee told the Invest and Manage Conference in London the investment fund was "in the process of raising a second fund to spend in the airport sector". Few investment funds were involved in the airport M&A business at its height in the late 1990s/early 2000s but they are very much at the forefront of what is happening now. So, who are they?
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