Stakes in airport set to be sold off

Jan 16 2007 By Jon Griffin, Birmingham Mail

THE future of Birmingham International Airport was thrown off course today after two major shareholders announced plans to offload their stakes.

Macquarie Airports Group and Dublin Airport Authority, who hold a combined stake of 48.25 per cent, said they were jointly "exploring a disposal of interest" in the airport.

The move throws the future ownership of the airport - the UK's fifth largest - into question although airport managing director Richard Heard today insisted it was still "business as usual."

Mr Heard said: "Under the current public/private partnership shareholding arrangements, Birmingham International Airport has grown and developed in stature tremendously over the last 10 years.

"The airport now directly supports some 11,000 jobs and directly contributes over £200 million per annum to the Midlands economy.

"The airport company looks forward to the development of new shareholding arrangements with the active involvement of the councils but otherwise, it is very much business as usual."

The current shareholding at the airport incorporates a 49 per cent stake held by the seven West Midland metropolitan councils, including Birmingham, Solihull, Coventry, Dudley, Sandwell, Walsall and Wolverhampton.

Macquarie Airports Group and Dublin Airport Authority, through its Aer Rianta International subsidiary, each hold a 24.125 per cent stake, with the 2.75 per cent balance held by an employee share trust.