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City Airport makes £100m bid for Southend
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| Southend Airport |
LONDON City Airport could pay up to £100million to take over Southend Airport.
Bosses at the east London terminal are the first to confirm their bid to run Southend Airport, pledging to develop business and passenger flights if their proposal is accepted.
Current airport operator, Regional Airports, put its 99-year lease from Southend Council up for sale last month, in a sealed bid auction which is expected to raise in the region of £100million.
Rupa Haria, spokeswoman for London City, said: "I can confirm London City Airport has put forward a bid to take over Southend.
"Obviously, because of the commercial sensibility and the sealed bid system, we cannot release any details of the figures involved.
"However, I can say that when we are looking towards the future, Southend would be an obvious partner for London City.
"The airports are less than hour away from each other and will be even less with the new rail station.
"We have a track record which shows we can work with local residents which we have done successfully. In addition, London City is involved with Thames Gateway and we know the area.
"Southend is identified as an important part of Thames Gateway South Essex."
Ms Haria said if London City was successful, bosses would look towards developing Southend's passenger services.
"It is clear there is demand in the area for holiday and business flights and it would fit in with our existing operation from London City. There is a shortage of airport capacity in the South East and Southend could be important in the continued development of aviation."
Southend Airport managing director Alastair Welch said he could not comment.
Public relations regarding the sale are being handled by London-based consultants College Hill.
Spokesman Robert Pugsley said: "During this process there will be a lot of speculation about various bids and a lot of talk. The fact is they are in sealed envelopes and we will not know until the summer when they have been studied and evaluated by the brokers."
Southend Council leader Nigel Holdcroft said: "It would be improper for me to comment on any particular bid at the present time.
"We are obviously hoping the succesful firm will give a promising future for the airport."
Lib Dem group leader Graham Longley, who worked at the airport before he became a teacher, said: "It is an interesting development but I would like to have a lot more details on what they would be providing.
"I would have concerns if they were planning to just bring business flights to Southend to make more room for commercial flights at London City."
Reasons this bid could work
LONDON City Airport has nearly reached full capacity.
At the moment, it is fast approaching its limit of 80,000 flights per year and is looking to expand.
A planning application has been submitted to Newham Council to allow an expansion to 120,000 flights a year with the existing facilities, but there are no guarantees this will be approved.
Like Southend, London City is working to a masterplan hoping to serve eight million passengers a year by 2030.
However, there are no guarantees any of the development will be able to proceed before the 2012 Olympics four years away.
It is expected there will be significant demand for air travel to the Olympic site at Stratford.
With Southend the second nearest airport, it could be perfectly possible to take up the overflow capacity from London City.
Southend also has the advantage that its expansion has already been virtually approved, except for the proposed extension to the runway.
The planned new railway station, terminal building and control tower could all easily be in place in time for the Olympics.
There is an extra carrot for any further expansion, London City's proposals to double the number of staff at Southend airport from 1,500 to 3,000.
In its heyday in the 1960s and 70s, Southend was one of the busiest commercial airports in the country with scheduled and charter flights to Europe and the Channel Islands.
Nowadays, this has dwindled to just two flights a week to and from Jersey run by budget airline FlyBe.
COMPANIES JOINING THE RACE TO BID HIGHEST
A HOST of international companies are believed to be lining up to bid for Southend Airport.
A number of them already have investments in the airport industry. They are:
Australian bank Macquarie. The company has stakes in airports from Sydney to Bristol, and is also thought to be keen to bid for Gatwick, if BAA parent group Ferrovial is forced to sell it by the Competition Commission.
Spanish company Albertis. It has stakes in Luton, Cardiff and Belfast airports
Dawnay Day, which owns Oxford airport
Balfour Beatty, which owns Exeter airport
Hochtief, an airport management business based in Germany, which owns six airports around the world
Other interested bidders are Barclays Capital which has been involved in consortium buys, and Cognetas, a private equity group with investments in Europe and the US.
More than 40 parties were sent information on the airport sale last month.
11:00am Tuesday 18th March 2008
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CommentPosted by: APR, Benfleet on 1:58pm Tue 18 Mar 08
It's no secret that LONDON City Airport have been showing an interest in Southend for a while now.
It would make a lot of sense them taking it over, as their aircraft often use Southend for diversions in bad weather. City airport is also often pushed to take aircraft, due to lack of parking space.
A lot will depend on the railway station being built.
It's no secret that LONDON City Airport have been showing an interest in Southend for a while now.
It would make a lot of sense them taking it over, as their aircraft often use Southend for diversions in bad weather. City airport is also often pushed to take aircraft, due to lack of parking space.
A lot will depend on the railway station being built.
Posted by: Dan, North Leigh on 2:19pm Tue 18 Mar 08
This is a good thing - City Airport are very experienced at dealing with business flights and airlines, and once the hotel and station are up and running Southend could become a viable destination for business travellers from the continent wishing to avoid the madness of Heathrow or Gatwick.
This is a good thing - City Airport are very experienced at dealing with business flights and airlines, and once the hotel and station are up and running Southend could become a viable destination for business travellers from the continent wishing to avoid the madness of Heathrow or Gatwick.
Posted by: schraube, canvey on 5:17pm Tue 18 Mar 08
This story is really boring, it reminds me of'Groung Hog day'
Just get on with it please!!
This story is really boring, it reminds me of'Groung Hog day'
Just get on with it please!!
Posted by: Terry Phillips, leigh-on-sea on 6:11pm Tue 18 Mar 08
With the way LCA have worked with newham council. I'm sure southend will prosper. the CEO Richard Gooding has the midus touch.
I see only good coming from there bidding
With the way LCA have worked with newham council. I'm sure southend will prosper. the CEO Richard Gooding has the midus touch.
I see only good coming from there bidding
Posted by: dave turner on 6:12pm Tue 18 Mar 08
All this talk about how busy the airport was in the 60's /70's is correct.
The demise of the airport then was down to the council and nobody else refusing all expansion plans by Freddie Laker, Jack Jones (Channel Airways)Mr Keggan ( Keggan Airways)Freddie Laker & Jack Jones both moved to Stanstead.
Who in their right mind would take the chance of the same thing happening to them, more so because of the costs of aircraft now with all the regulations that have come into being since the 60's/70's
All this talk about how busy the airport was in the 60's /70's is correct.
The demise of the airport then was down to the council and nobody else refusing all expansion plans by Freddie Laker, Jack Jones (Channel Airways)Mr Keggan ( Keggan Airways)Freddie Laker & Jack Jones both moved to Stanstead.
Who in their right mind would take the chance of the same thing happening to them, more so because of the costs of aircraft now with all the regulations that have come into being since the 60's/70's
Posted by: andy, thorpe bay on 9:40pm Tue 18 Mar 08
Just the news we have all been waiting for and lets hope they are the lucky bidders. They could call it 'Thames Gateway-Southend Airport'. A number of the airlines who operate to LCY already have diversion contracts with Southend Airport Ltd for when they are not able to land at LCY so it would only seem logical London City Airport should want to consider operating the airport and develop it to its full potential as well. Lets hope they do.
Just the news we have all been waiting for and lets hope they are the lucky bidders. They could call it 'Thames Gateway-Southend Airport'. A number of the airlines who operate to LCY already have diversion contracts with Southend Airport Ltd for when they are not able to land at LCY so it would only seem logical London City Airport should want to consider operating the airport and develop it to its full potential as well. Lets hope they do.
Posted by: piano hinges on 9:16am Wed 19 Mar 08
I smell a nasty smell.
The rank odour of Renaissance and their chums at the trough.
I smell a nasty smell.
The rank odour of Renaissance and their chums at the trough.
Posted by: DP, rochford on 2:27pm Thu 20 Mar 08
it will be interesting
to see what affect the exspansion of the airport will have on property prices in the area? will it cause a blight in the same way stansted has?
it will be interesting
to see what affect the exspansion of the airport will have on property prices in the area? will it cause a blight in the same way stansted has?
Posted by: Jesus Aguilera, London, Newham on 12:14pm Mon 24 Mar 08
Another example of the greed of London City Airport. They couldn't care less about people who live close to their noise airport. Now they want to make the lives of people in southend a misery as well. Richard Gooding has made City airport a business success at the expense of residents whose properties are going to become uninhabitable due to aircraft noise. Well done Richard, keep up the good work.
Another example of the greed of London City Airport. They couldn't care less about people who live close to their noise airport. Now they want to make the lives of people in southend a misery as well. Richard Gooding has made City airport a business success at the expense of residents whose properties are going to become uninhabitable due to aircraft noise. Well done Richard, keep up the good work.
Posted by: Mr X., London on 8:07pm Tue 6 May 08
[quote][bold]Jesus Aguilera[/bold] wrote:
Another example of the greed of London City Airport. They couldn't care less about people who live close to their noise airport. Now they want to make the lives of people in southend a misery as well. Richard Gooding has made City airport a business success at the expense of residents whose properties are going to become uninhabitable due to aircraft noise. Well done Richard, keep up the good work.[/quote] It's an airport? Aircraft make noise suprisingly. London City have a strict noise policy that ALL aircraft have to follow.
As for couldn't care less, I beg to differ - London City has played a key role in improving the local area and providing support for local chairtable services.
If your that bothered about the noise may I suggest you invest in buying some ear muffs. If you need some, I'm sure I can find some for you . . .
The airport has been operating for 20 years now, and is a huge success. How long have you been living in the area for? If it's less than 20 years, may I suggest you move if it's such a big deal?
Jesus Aguilera wrote:
Another example of the greed of London City Airport. They couldn't care less about people who live close to their noise airport. Now they want to make the lives of people in southend a misery as well. Richard Gooding has made City airport a business success at the expense of residents whose properties are going to become uninhabitable due to aircraft noise. Well done Richard, keep up the good work.
It's an airport? Aircraft make noise suprisingly. London City have a strict noise policy that ALL aircraft have to follow.
As for couldn't care less, I beg to differ - London City has played a key role in improving the local area and providing support for local chairtable services.
If your that bothered about the noise may I suggest you invest in buying some ear muffs. If you need some, I'm sure I can find some for you . . .
The airport has been operating for 20 years now, and is a huge success. How long have you been living in the area for? If it's less than 20 years, may I suggest you move if it's such a big deal?
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