EGPF Forum

VINCI Airports to acquire the majority shareholding in Edinburgh Airport

April 17, 2024

Agreement signed to acquire a 50.01% shareholding in the company owning Edinburgh Airport.
First airport in Scotland and sixth in the UK in 2023, with traffic of 14.4 million passengers.
After Belfast International in 2018 and London Gatwick in 2019, VINCI Airports now expands its network in the UK to three freehold airports, and more than 70 airports across the world.
VINCI Airports, a VINCI Concessions subsidiary, signed today an agreement to acquire an effective 50.01% stake in Edinburgh Airport Limited – the company that owns Edinburgh Airport – for £1.27 billion1.

The transaction is expected to be completed during Summer 2024, following the receipt of regulatory approvals. The remaining 49.99% stake will be managed by Global Infrastructure Partners (GIP), which has owned the airport since 2012.

This acquisition marks a new stage in the strategic partnership initiated by VINCI Airports with GIP in 2019, when it acquired a majority stake in London Gatwick Airport.

Edinburgh Airport reported a total revenue of GBP 272 million and an EBITDA margin of 65% in 2023. It will be fully consolidated in the Group accounts.

VINCI Airports will leverage its global airports experience to further develop Edinburgh Airport – both aeronautical and non-aeronautical (especially retail) – by opening new routes and making additional investments. VINCI Airports will also deploy its environmental expertise to improve the platform's already outstanding ESG metrics.

Edinburgh Airport has a highly experienced management team who will continue to lead the company and whom VINCI Airports is delighted to welcome to its global network.

This emblematic infrastructure in Scotland is perfectly aligned with VINCI Airports' development strategy.

Key strategic highlights include:

Reinforcement of VINCI as a key player and long-term foothold in the UK infrastructure market. With a total revenue of almost €6 billion in 2023, the UK is the second biggest country for VINCI’s operations. VINCI Airports’ teams have gained significant experience since becoming the majority shareholder of Belfast International airport in 2018 and London Gatwick airport in 2019. VINCI Airports has demonstrated its ability to be a trusted and resilient partner by managing these airports in unprecedented crisis situations.
Scotland’s largest airport and the sixth largest in the UK. Edinburgh Airport is strategically located in the Scottish capital serving a catchment area of more than 4 million inhabitants. Edinburgh is the second most prosperous city in the UK and one of the main tourist destinations in the British Isles. It currently serves over 150 destinations in 38 countries thanks to close long-term relationships with airlines such as easyJet, Ryanair, British Airways and Jet2.
Traffic growth potential. Edinburgh Airport benefits from strong traffic fundamentals and growth forecasts are positive in particular with respect to long-haul segments. Traffic is expected to fully recover its pre-covid levels during 2024.
Freehold ownership structure. Edinburgh Airport is not a concession based asset but instead a freehold airport with no time limit. It is therefore a particularly valuable addition to VINCI Airports’ portfolio, which has a long-term approach to investing in and operating assets.
[1] Subject to possible adjustments prior to completion of the transaction

The key for taking EDI to the next level is if real investment is made in the facilities. Plans are in place to significantly change/expand the terminal layout. This will cost significantly more than the current planned expenditure. It’s over to Blackrock/GIP and Vinci now to deliver. Although the article suggest the current management team will remain in place, as is common, change will happen. LGW has seen quite a transformation recently with regards to route development. The hope will be that Vinci use their levers to continue to grow EDI’s portfolio.

Planeenthusiast wrote: ↑Wed Apr 17, 2024 9:39 am The key for taking EDI to the next level is if real investment is made in the facilities. Plans are in place to significantly change/expand the terminal layout. This will cost significantly more than the current planned expenditure. It’s over to Blackrock/GIP and Vinci now to deliver. Although the article suggest the current management team will remain in place, as is common, change will happen. LGW has seen quite a transformation recently with regards to route development. The hope will be that Vinci use their levers to continue to grow EDI’s portfolio.

Only reason LGW has had route development is the slot issue at LHR . Sure if there wasn't an issue at LHR they wouldn't of had this growth and airlines have said so and indicated .

Have announced today the completion of their majority share purchase of EDI. Along with LGW and BFS Vinci is the majority shareholder of these three UK airports. This brings a common ownership split of 50.9% and 49.1% between Vinci and GIP.

It will be interesting to see how things pan out for AGS.

I think AGS should be split up if i’m honest and I think Aena’s interest in GLA could also do well. They have many the connections with the likes of FR.

atuk wrote: ↑Wed Jun 26, 2024 8:42 pm Have announced today the completion of their majority share purchase of EDI. Along with LGW and BFS Vinci is the majority shareholder of these three UK airports. This brings a common ownership split of 50.9% and 49.1% between Vinci and GIP.

It will be interesting to see how things pan out for AGS.

Will also be interesting to see if Vinci proceed with the plans to expand the terminal at EDI. Effectively creating two terminals with all domestic and Irish flights using gates 1-6. The remaining part of terminal for all international arrival and departures along with a US pre-clearance section (if approved).

US Preclearance at EDI.

Reality check. For 6 months of the year there is a single daily 757 crossing the pond.

FlyGLA wrote: ↑Wed Jun 26, 2024 11:52 pm US Preclearance at EDI.

Reality check. For 6 months of the year there is a single daily 757 crossing the pond.

Reality check: that statement's wrong. DL also operate their JFK service through the winter, taking a break between 4th January and the 9th March.

G-WATP wrote: ↑Thu Jun 27, 2024 6:28 am

FlyGLA wrote: ↑Wed Jun 26, 2024 11:52 pm US Preclearance at EDI.

Reality check. For 6 months of the year there is a single daily 757 crossing the pond.

Reality check: that statement's wrong. DL also operate their JFK service through the winter, taking a break between 4th January and the 9th March.

I thought Delta had went seasonal at EDI. Apologies, however, a single 757 for a quarter of the year and just two 757s for the other quarter still doesn't warrant pre-clearance.