Investment groups have been formed in order to propose a bid for the London Gatwick Airport. The British Airports Authority has had the airport up for sale since a pre-ruling by the Competition Commission that their ownership of all 3 airports in London is not in the best interest of the public. The sale is said to reduce fees for carriers and passengers by bringing in more competition, but those airlines who use the airport anticipate an increase in fees no matter who is the owner.

3i, a private equity group, partnered with the Ontario Teacher’s Pension Fund, one of the world’s largest, in order to put a bid together on the Gatwick Airport. The 2 entities have reportedly been in contact with Macquarie, an Australian banking group, and NM Rothschild to act as bid advisors. The Canadian Pension Plan is also believed to be considering partnering with the consortium on making a move on the airport. The bid may be somewhere around £1.5 billion.

Virgin Atlantic and possibly easyJet have reportedly teamed up together in a consortium for a bid. Citigroup’s infrastructure fund, the Vancouver Airports Authority, and the John Hancock Life Insurance Company have been said to be interested, as well as the Manchester International Airports Group together with Borealis. Three Gulf-based sovereign wealth funds has have said to be strongly interested as well.

To get the ball moving, the British Airports Authority will start the selling process of the Gatwick Airport during the week, issuing information to bidders, as well as announcing a sale timetable. The British Airports Authority anticipates the first bids to be made in January, with the final bids made in late March.

Find out more about the airport at: www.gatwickairport.com