Recouping part of the purchase costs! Just as Santander did after purchasing Abbey National plc.
I don’t fell particularly positive regards Avi Alliance and never did so given that they haven’t exactly set the Heather on fire in Germany.
AviAlliance sells 22% to Blackstone
Re: AviAlliance sells 22% to Blackstone
I dont believe AviAlliance own a majority stake in either of the German airports. At HAM the 51% controlling stake is held by the local government and at DUS AviAlliance only own a 30% stake, so I'm not sure we can wholly lay any issues at their door.
Moreover, I believe that air traffic in Germany has generally struggled to recover to anything close to pre-COVID numbers. This is an issue that can be seen across the country at a number of airports, so again, not necessarily a specifically Avialliance problem.
Indeed, I believe I read that part of the reason that Aviailance wanted to invest into UK airports is that they have shown a better recovery and have better growth prospects.
Afaik the only European airport (other than the AGS ones), where AviAliiance have a controlling stake is ATH. Its shown strong passenger growth and is now several million pax ahead of 2019 numbers. It has a Ryanair base, other locos, significant growth in US flights and a number of Asian carriers we would love to see at GLA.
Iirc until recently Avialliance were also in charge at BUD, which again has shown great growth in the last few years and features big FR and W6 bases and lots of carriers we'd like to see at GLA. Additionally, the man that was in charge at BUD, Kam Jandu, is the person that AviAlliance have brought in to be CEO of AGS.
Of course the jury is out on AviAlliance and they're going to have to produce results in order for us to view them positively, but I don't we can write them off on past performance, because I don't think it's that bad.
Avialliance have also obviously invested a significant amount of money into AGS and now Blackstone have come in and invested hundreds of millions as well, so they must believe that there is significant improvement and growth available from the AGS airports Given that GLA is the largest airport in the group and contributes the lions share of passengers, they must have confidence that GLA can grow significantly as part of that.
Moreover, I believe that air traffic in Germany has generally struggled to recover to anything close to pre-COVID numbers. This is an issue that can be seen across the country at a number of airports, so again, not necessarily a specifically Avialliance problem.
Indeed, I believe I read that part of the reason that Aviailance wanted to invest into UK airports is that they have shown a better recovery and have better growth prospects.
Afaik the only European airport (other than the AGS ones), where AviAliiance have a controlling stake is ATH. Its shown strong passenger growth and is now several million pax ahead of 2019 numbers. It has a Ryanair base, other locos, significant growth in US flights and a number of Asian carriers we would love to see at GLA.
Iirc until recently Avialliance were also in charge at BUD, which again has shown great growth in the last few years and features big FR and W6 bases and lots of carriers we'd like to see at GLA. Additionally, the man that was in charge at BUD, Kam Jandu, is the person that AviAlliance have brought in to be CEO of AGS.
Of course the jury is out on AviAlliance and they're going to have to produce results in order for us to view them positively, but I don't we can write them off on past performance, because I don't think it's that bad.
Avialliance have also obviously invested a significant amount of money into AGS and now Blackstone have come in and invested hundreds of millions as well, so they must believe that there is significant improvement and growth available from the AGS airports Given that GLA is the largest airport in the group and contributes the lions share of passengers, they must have confidence that GLA can grow significantly as part of that.
Re: AviAlliance sells 22% to Blackstone
Good positive post Iain, thanks. I must check to see if this board has a like button.
Re: AviAlliance sells 22% to Blackstone
Agreed, I believe that the Blackstone involvement with AviAlliance will be beneficial to the group with GLA leading the pack.
Re: AviAlliance sells 22% to Blackstone
What stands out here is the similar strategic approach adopted by Blackstone and AviAlliance in developing their respective airport assets.
Blackstone was involved with London Luton Airport through its investment in London Luton Airport Holdings (LLAH), which it co-owned with Ardian, a French private investment firm. Here’s a breakdown of their involvement:
1. Acquisition and Ownership (2013–2018)
In 2013, Blackstone and Ardian jointly acquired a 90% stake in London Luton Airport from Spanish infrastructure company Abertis.
The remaining 10% was owned by Luton Borough Council, which retained control over certain regulatory and planning matters.
2. Investment and Expansion
During Blackstone’s ownership, Luton Airport underwent a £160 million redevelopment, increasing passenger capacity from 9.7 million to 16 million annually.
Improvements included:
- Upgraded transport links, including a better rail connection to central London.
- More check-in desks and security lanes to reduce passenger wait times.
During Blackstone’s ownership of London Luton Airport, there was significant airline and route expansion, which helped drive passenger numbers from 9.7 million to over 16 million per year.
Wizz Air: Luton became Wizz Air’s largest base in the UK, increasing the number of flights to Eastern & Central Europe. Wizz Air even established a UK subsidiary (Wizz Air UK) in 2017, headquartered at Luton.
EasyJet: EasyJet remained the largest airline at Luton, increasing its based fleet and routes. New destinations were added, particularly to Spain, Italy, and France.
Ryanair: Ryanair expanded operations at Luton, increasing competition with EasyJet by basing more aircraft.
Other Airlines: Blue Air, El Al, SunExpress and Vueling all added or grew their ops at Luton in this time.
3. Exit (2018)
In April 2018, Blackstone and Ardian sold their stake in London Luton Airport to AMP Capital, an Australian infrastructure investment firm.
At the time of sale, Luton was the fifth busiest UK airport, handling over 16 million passengers per year.
Both Blackstone’s tenure at Luton and AviAlliance’s ownership of Budapest Airport demonstrate a strong focus on low-cost airline expansion, a strategy that may now influence Glasgow Airport under its new MD.
Luton, under Blackstone’s investment, became a key base for Wizz Air and easyJet, supported by infrastructure improvements that enabled high-frequency, low-cost operations. Similarly, Budapest Airport, under AviAlliance, saw a rapid increase in Ryanair and Wizz Air routes, positioning it as a leading low-cost gateway in Europe.
With Glasgow Airport now for the first time under the guidance of executives familiar with this low-cost airline growth model, there is significant potential for increased Wizz Air, Ryanair, and easyJet operations, leveraging the successful expansion strategies implemented at Luton and Budapest.
Blackstone was involved with London Luton Airport through its investment in London Luton Airport Holdings (LLAH), which it co-owned with Ardian, a French private investment firm. Here’s a breakdown of their involvement:
1. Acquisition and Ownership (2013–2018)
In 2013, Blackstone and Ardian jointly acquired a 90% stake in London Luton Airport from Spanish infrastructure company Abertis.
The remaining 10% was owned by Luton Borough Council, which retained control over certain regulatory and planning matters.
2. Investment and Expansion
During Blackstone’s ownership, Luton Airport underwent a £160 million redevelopment, increasing passenger capacity from 9.7 million to 16 million annually.
Improvements included:
- Upgraded transport links, including a better rail connection to central London.
- More check-in desks and security lanes to reduce passenger wait times.
During Blackstone’s ownership of London Luton Airport, there was significant airline and route expansion, which helped drive passenger numbers from 9.7 million to over 16 million per year.
Wizz Air: Luton became Wizz Air’s largest base in the UK, increasing the number of flights to Eastern & Central Europe. Wizz Air even established a UK subsidiary (Wizz Air UK) in 2017, headquartered at Luton.
EasyJet: EasyJet remained the largest airline at Luton, increasing its based fleet and routes. New destinations were added, particularly to Spain, Italy, and France.
Ryanair: Ryanair expanded operations at Luton, increasing competition with EasyJet by basing more aircraft.
Other Airlines: Blue Air, El Al, SunExpress and Vueling all added or grew their ops at Luton in this time.
3. Exit (2018)
In April 2018, Blackstone and Ardian sold their stake in London Luton Airport to AMP Capital, an Australian infrastructure investment firm.
At the time of sale, Luton was the fifth busiest UK airport, handling over 16 million passengers per year.
Both Blackstone’s tenure at Luton and AviAlliance’s ownership of Budapest Airport demonstrate a strong focus on low-cost airline expansion, a strategy that may now influence Glasgow Airport under its new MD.
Luton, under Blackstone’s investment, became a key base for Wizz Air and easyJet, supported by infrastructure improvements that enabled high-frequency, low-cost operations. Similarly, Budapest Airport, under AviAlliance, saw a rapid increase in Ryanair and Wizz Air routes, positioning it as a leading low-cost gateway in Europe.
With Glasgow Airport now for the first time under the guidance of executives familiar with this low-cost airline growth model, there is significant potential for increased Wizz Air, Ryanair, and easyJet operations, leveraging the successful expansion strategies implemented at Luton and Budapest.