Eastern Group acquires Humberside Airport from MAG
MANCHESTER Airports Group has sold its 82.7% shareholding in Humberside Airport to Eastern Group as it focuses on the ownership of larger assets.
Eastern Group operates the Eastern Airways airline and has its headquarters at Humberside Airport.
It is understood that Eastern has paid £2.3m for the stake. MAG bought Humberside Airport for £10m in 1999 and has invested a further £7m in the operation since then.
North Lincolnshire Council will retain its minority stake in Humberside Airport.
MAG said the sale meant it could concentrate on maximising growth opportunities at its larger Manchester, East Midlands and Bournemouth airports.
Charlie Cornish, MAG’s chief executive, said: “MAG has believed for some time that the best long-term operational model for Humberside Airport was with a new owner that could focus on taking the business forward into the next phase of its development.
“The Eastern Group specialises in aviation related activities and we are delighted that our former colleagues at the airport will now have a new owner who can concentrate on developing the business.”
Bryan Huxford, chairman of Eastern Group, said: “We are making a strategic financial investment acquiring Humberside Airport. The airport has potential for growth, and under the present airport management team, supported by Eastern Group, will develop in accordance with the business plan already in place.”
Humberside Airport has annual passenger numbers of 275,000 and it offers scheduled and charter passenger services, as well as freight.
It is also home to the second largest airport based heliport serving the North Sea offshore industry.
In April 2008, MAG began an eight-month review of its shareholding in Humberside Airport, but it was retained within the group’s portfolio, partly because of a worsening economic climate.
Coun Liz Redfern, leader of North Lincolnshire Council, said: “These measures are vital in helping secure a viable future for Humberside Airport.
“There are a number of unique opportunities to deliver jobs and growth and support, and underpin further investment in the area. The airport has a fantastic business park with huge potential. Its location is perfect with easy access to the ports and South Humber Gateway – vital to the future success of our region.”
The airport’s current management team will continue to manage the operation.
The corporate finance team at law firm Pannone advised MAG on the sale. Partner Steven Grant led the team at Pannone which included Tom Hall, Harriet Sutherland, Amy Chandler and Victoria Dolan.
