TBI, 90% owned by abertis and 10% by Aena Internacional, signed (22-Jul-2013) an agreement with ADC & HAS Airports Worldwide for the sale of Belfast International and Stockholm Skavsta airports, as well as the Orlando Sanford (Florida) airport terminal concessions and TBI’s airport management business in the US. The transaction amounts to EUR284 million in cash, of which abertis will receive 90% according to its stake and Aena will receive 10%. The transaction includes the purchase of 100% of the shares in Belfast International Airport, 90.1% of the shares in Stockholm-Skavsta Airport and 100% of the shares in the concession to operate Orlando Sanford Airport. Also included in the acquisition are 100% of the shares of TBI Airport Management, which has operating contracts for various airports including Concourse E and the Maynard Jackson International Terminal at Hartsfield-Jackson Atlanta International Airport; Bob Hope Airport; the Middle Georgia Airport; Macon Downtown Airport, and Raleigh Durham International Airport’s terminal 2. ADC & HAS is a privately-held company whose sole business is investing in, developing and operating airports worldwide. It currently owns 48.75% of the shares in San Jose Juan Santamaria International Airport and 45.0% of the shares in the concession to develop and operate Daniel Oduber International Airport serving Costa Rica’s growing Guanacaste tourist region. The acquisition is subject to customary regulatory approvals and closing conditions. abertis said the transaction forms part of its strategy to continually manage its portfolio in order to optimise its asset base, is pending approval by local authorities (who are minority shareholders) in the case of Belfast and Skavsta. In respect of the US-based assets, the sale is subject to authorisation by the anti-trust authorities and will proceed providing no opposition is raised by the Committee on Foreign Investment in the United States (CFIUS). The airports sold to ADC & HAS Airports Worldwide have formed part of abertis' portfolio since 2005, when the company and Aena Internacional purchased the British operator TBI. AZ Capital and Citi have advised abertis in the deal while ADC & HAS was advised by HSBC Bank plc and O’Melveny & Myers LLP as financial and legal advisors respectively. DUP Member of the Assembly’s Enterprise, Trade and Investment Committee Robin Newton welcomed (22-Jul-2013) the successful conclusion of the business deal on the Belfast International Airport, stating: “I am pleased the rumours around the deal have been finally quashed and that a successful outcome has been achieved. It is vitally important to provide improved air links across the globe for the development of the local economy. Attracting inward investment opportunities can be increased with easier worldwide connections to Belfast. The overall potential of our tourism product will be positively affected if these international air links get better". [more - original PR - arbertis] [more - original PR - DUP Member of the Assembly’s Enterprise, Trade and Investment Committee] [more - original PR - TBI] [more - original PR - ADC & HAS]
abertis to sell airport assets in Europe and the US to ADC & HAS Airports Worldwide
You may also be interested in the following articles...
Airport pairs: Western Europe-US shows the value of open skies as routes and new entry proliferate
For Western Europe there is no bigger long haul market than North America. In terms of the number of airport pairs between the countries of Western Europe and long haul destination countries, connectivity to the United States dominates. There are more direct routes between Western Europe and the US than there are between Western Europe and the whole of Asia Pacific.
This report presents high level data on the numbers of airport pairs between each Western European country and the US and how these number have changed. EU-US liberalisation in 2008 has stimulated growth in the number of direct connections, although the global economic downturn impeded this for a while. However, the additional routes have not been spread evenly across Western European countries.
Since 2010, additional route numbers from Western Europe to the US have been greatest from the largest markets – the UK and the US – and from the smaller countries, particularly Ireland, Iceland and Norway. Countries in between, including France, Italy, Spain and the Netherlands, have hardly added any new US routes at all.
IAG lowers plans for capacity growth, fleet investment & profit, but keeps return on capital target
IAG's Capital Markets Day on 4-Nov-2016 was the first since its formation in 2011 when it lowered any of its medium term financial targets. It cut its 2016-2020 average EBITDAR goal, in spite of adding in Aer Lingus for the first time. This followed two cuts to 2016 operating profit guidance during the course of this year, as a result of "a tough operating environment". It has been hit by adverse currency movements, mainly resulting from the UK's Brexit vote, in addition to ATC strikes and terrorist events.
To its credit, IAG has responded to the more challenging trading conditions by lowering its planned capacity growth and capital expenditure during its 2016-2020 strategic plan. These steps are necessary if it is to have a chance of meeting its ambitious goal to sustain a 15% return on invested capital. This target is unchanged, despite the lower profit outlook.
In 3Q2016, IAG's rolling four quarter return on capital fell, after rising more or less continuously since it began to target this measure in 2013. It has consistently been more profitable than either of its two main European legacy airline group rivals (Air France-KLM and Lufthansa). Nevertheless, the downward step highlights the challenge in meeting its own demanding target.