UK’s London Gatwick Airport owner, Global Infrastructure Partners (GIP), plans to sell bonds later this year to refinance debt used to purchase the airport (Bloomberg, 23-Feb-2010). GIP plans to replace its short-term bank debt with long term bonds. The bonds are to be sold in the airport’s name. GIP borrowed GBP740 million from a bank syndicate to finance the GBP1.5 billion purchase of Gatwick.
London Gatwick Airport owner to sell bonds to refinance debt
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Brexit and aviation: still no clarity, even as UK government sets timeframe and broad principles
Over seven months after the UK voted in a referendum to leave the European Union, the longer term impact on aviation remains uncertain. The UK Prime Minister Theresa May will almost certainly gain parliamentary authority to trigger Article 50 by her planned deadline of the end of Mar-2017, taking the UK out of the EU by Mar-2019.
On 17-Jan-2017 Mrs May set out 12 principles which will guide the UK in its negotiations with the European Union over the terms of its exit. These principles formed the basis of a White Paper outlining the government's planned approach to the Brexit negotiations. Among other things, the UK does not plan continued membership of the EU Single Market and wishes to control immigration.
There is now a clear timeframe for the Brexit negotiations and a broad framework to guide the UK government in these talks, but still no clarity for aviation. There are obstacles to the UK's continued membership of the European Common Aviation Area, and a bilateral approach may now be more likely. The UK Transport Secretary wants the "best possible access to European aviation markets", but is not yet able to say how that can be achieved.
Norwegian Air, Ryanair talk bilateral interline. A good match but Kjos' alliance case less clear
Norwegian CEO Bjørn Kjos hopes to have an interline agreement in place with Ryanair before the end of 2017. Discussions between the two airlines have been taking place for many months, and both have publicly talked about the benefits of facilitating connecting passengers with a single ticket for a trip involving both airlines at airports where Norwegian operates long haul.
Mr Kjos told CNN Money on 1-Feb-2017 that he also envisaged an alliance formed of Europe's four leading independent LCCs: Ryanair, easyJet, Norwegian and Wizz Air. There is mileage in pursuing bilateral interlining, focusing on connections between Norwegian's long haul and the other three's short/medium haul.
However, the case for intra-Europe connections among the four LCCs, let alone for something as developed as an alliance, is less clear.