Wellington International Airport

British and Irish airport investments continue busy merger and acquisition activity

If there was any doubt that the UK & Ireland remains one of the most dynamic air transport markets in the world that suspicion was dispelled by the level of recent and potential activity in airport M&A.

With Edinburgh Airport about to change hands, Glasgow Prestwick and Manston (Kent) airports may follow this year, as will London Stansted, later. Cardiff Airport’s CEO resigned after a politician complained about lack of investment by the operator and there are plans to re-open Plymouth Airport under new ownership.

Meanwhile, in Ireland, the case has been made for a change of ownership at Shannon Airport - but not an outright privatisation – signaling the potential break-up of the Dublin Airport Authority.

Pacific Blue exits New Zealand domestic market. A turning point in Australia-New Zealand aviation

As they evolve towards a single market, domestic New Zealand and trans-Tasman airline operations have become increasingly competitive and overcrowded, with the global financial crisis and overcapacity further pressuring demand and yields in the region. As Virgin Blue Group’s Pacific Blue exits the New Zealand domestic market, the scene looks set for a full fledged Australasian confrontation between two major competitors - in one corner the large and well entrenched Qantas Group with its dual brand strategy and in the other the emerging partnership of Air New Zealand and Virgin Blue. Since the two smaller carriers proposed their trans-Tasman codeshare in May-2010, Qantas now knows it is clearly on the opposing team and is likely to ramp up its competitive thrust. This in turn almost inevitably will push Air NZ and Virgin to explore closer ties – for which there is considerable logic.