Leeds Bradford International Airport - Thread 2

[LeedsLad]

I really hope they spend the proceeds on new road and rail links...

[Orgoglioso]

I just read that Jet2 have had 3 b757's delivered from a Chinese airline and these aircraft can do medium/ short long haul flights so does this mean they are planning destinations further away?

[SmartCity]

...

[JOliver]

Originally Posted by SMARTCITY

On another note: A media group was advertising Jet2 flights to Croatia this week, prior to any official announcement by jet2 of flights there. So I think one could expect to so flights to Croatia announced very shortly.

That's good news mate

[LS16]

Jet2 have already announced winter 07/08 flights from Manchester and Malaga and Murcia AND summer 2008 flights on the same routes. I doubt you'll have to wait until the end of April for the rest of the winter schedule.
There was no advertising of the Croatia route - just a travel writer for the Metro commenting that you could fly from LBA and NCL to Pula. Just as likely to be crossed wires by the journo, but you never know

[Leeds rules]

Hi

Well just been looking around the web tonight and noticed that Shaheen Air UK website has been updated again. Its listing the following UK routes which are to be launched shortly to Pakistan.

London Luton to Lahore & Islamabad.
Leeds/Bradford to Lahore & Islamabad.
Glasgow to Islamabad.

See below poster.

[Leeds No.1]

Excellent Sounds like a direct flight too? The previous to only Lahore was not direct I believe?

[Orgoglioso]

Excellent Sounds like a direct flight too? The previous to only Lahore was not direct I believe?

yeh it was done by Swefly via Stokholm

[SmartCity]

I was told that there was a possible stop en-route in *****. If this is the case I don't see this as a hindrance as the flight would be a direct link between Leeds & ***** if this indeed turns out to be the case.

[SmartCity]

Interesting snippet in www.thisismoney.co.uk

Leeds Bradford Airport will become the UK's most highly valued infrastructure asset when its £140m sale, being run by accountancy giant Ernst & Young, is finalised on Wednesday.

Selling at nearly 30 times earnings, the deal will top the record achieved in the sale of L ondon's C ity Airport in 2006.

The airport recorded profits of £4.8m last year.

So the sale is expected to break records after all.

[rich-leeds]

six hours to go... the press release is due at 10pm - I assume this means at leeds.gov.uk ?

[leeds the best]

wonder what theyl spend it on.

[SmartCity]

Originally Posted by leeds the best

wonder what theyl spend it on.

Probably another council quango

Nothing that people actually want the money spending on ie. new roads or towards a supertram.

[luftnachrichten]

Announced on Reuters at 20.30.

Bridgepoint have got it.

What a F***ing disaster!!

http://uk.reuters.com/article/busine...64867520070404

[LeedsLad]

Can I ask why it's a disaster?

[LeedsLad]

www.lbia.co.uk:

The airport will continue to remain under the planning control of Leeds City Council and all of the five west Yorkshire authorities will also retain a ‘special share’ in the company.

The special share protects the name of the airport and its continued operation as an international airport.

The final price for the airport is still subject to final bid confirmation.

[Val Verde]

Originally Posted by LeedsLad

Can I ask why it's a disaster?

Presumably he's got concerns because its a private equity company that has bought LBA as opposed to a specialist infrastructure company such as TBI or Regional City Airports which I personally would have preferred to take over LBA. Especially with all the concerns about private equity putting profit over anything else maybe he is concerned that they may run it down although if you have spent over £100 millon on an airport surely you wouldn't do anything like that and instead you would want to try to create a second strong airport for the North?

Presumably they paid the most money for LBA hence the decision to sell the airport to them? Does anyone know the exact price yet?

Also here is the press release from the LBA website:

Preferred Bidder Press Release
4 April 2007

PREFERRED AND RESERVE BIDDER ANNOUNCED FOR SALE OF LEEDS BRADFORD INTERNATIONAL AIRPORT

Bridgepoint has today been announced as the preferred bidder for the sale of 100% of the share capital in Leeds Bradford International Airport, with Barclays Private Equity with Churchill Airports, as the reserve bidder. Both bidders have been nominated subject to final bid confirmation.

The announcement follows meetings involving all five West Yorkshire councils with shareholding interests in the airport. A joint agreement was reached this evening.

Both the preferred and reserve bidder have developed ambitious plans to sustain passenger growth and invest significantly in the airport over the next ten years. Much of this will focus on improving the airport’s customer facilities and infrastructure, expanding the route network and ensuring the airport can compete efficiently with other airports in the region.

Both bidders will now be given six working days to confirm their bid price following the receipt of final vendor due diligence reports and other commercially sensitive contractual information.

A joint statement from the five West Yorkshire councils, said:

“This sale has proved to be a very competitive process at all stages and with very strong bids from both the preferred and reserve bidders, it is likely to remain so until the deal is completed in a few weeks time.’’

‘’ This is a very exciting opportunity and we are delighted to announce Bridgepoint as the preferred bidder at this stage. They have clearly demonstrated not just their financial standing and their plans for growing and developing the airport, but also their commitment to the region as a whole and the airport’s crucial part in its economy.”

“We’ve attracted a strong field of bidders and each bid was evaluated fairly. Both the preferred and reserve bidder have demonstrated positive and significant investment plans and we are confident that the chosen preferred and reserve bidder will be in the best position to continue the airport’s development as a successful international airport which will support the region’s increasing economic importance nationally and internationally.”

Leeds and Bradford councils each own 40% of the airport with the remainder split equally between Kirklees, Wakefield and Calderdale. The airport will continue to remain under the planning control of Leeds City Council and all of the five west Yorkshire authorities will also retain a ‘special share’ in the company.

The special share protects the name of the airport and its continued operation as an international airport.

The final price for the airport is still subject to final bid confirmation.

The joint statement concluded:

“Council officers have worked hard to make this sale a success and secure the best outcome for council tax payers and I know they are looking forward to working with the two bidders and bringing the sale to completion.”


Background Information

The airport was formally advertised for sale in November 2006. Indicative bid submissions were required by the 11 January 2007 and five bidders were selected to submit binding bids
in early March.

The council’s lead advisor for the transaction is Ernst and Young LLP with legal advice provided by DLA Piper. The final vendor due diligence reports have been compiled by PricewaterhouseCoopers

The five organisations selected were:
· ABN AMRO Infrastructure, an infrastructure fund of the Dutch investment bank, with Faros Investment Partners, a specialist airport management company.
· Barclays Private Equity infrastructure fund (who have held an interest with Luton airport in the past) with Churchill Airports, a specialist airport management company.
· Bridgepoint infrastructure fund, who were involved in the original privatisation of Birmingham International Airport.
· Regional and City Airports led by Balfour Beatty, who recently bought Exeter Airport with infrastructure fund, Galaxy and airport operators, Koln Bonn and Aer Rianta.
· TBI, who have interests in Luton, Cardiff and Belfast International airports and are 90% owned by Abertis, a large Spanish transport and infrastructure plc based in Barcelona who have airport interests in the USA and Latin America.

The binding offers were evaluated against clear objectives across a range of financial, socio-economic and employment considerations. Bidders had to produce a business plan and demonstrate the level of planned capital investment in the airport.

Each of the five shareholding authorities held special Cabinet, Executive Board or Full Council meetings today, Wednesday 4 April to agree the preferred and reserve bidder. The sale is expected to be completed towards the end of April 2007.

[luftnachrichten]

Bridgepoint is not my preferred (and I am not the only one who shares this sentiment). I will summarise very briefly (I could go on for pages), but I am just giving my short opinions at this stage.

I would have preferred a company with a diverse and proven portfolio with £3bn clout behind them. Not a company that is fronted by someone who "has contacts".

Bridgepoints portfolio (as an equity manager) indicates they have a habit of buying and selling businesses rapidly for a short term return, one would assume to satisfy their investor clients.

The airport makes just over 4.5m profit per yr, acheived less than forecast on pax returns, but in reality needs in excess of 100m investment short/medium term. Various press releases and other sources indicate that Bridgepoint have shown intention to invest in the airport and infrastructure and attract new business. To what level is not clear at this stage. Assume it is 100m on various on and off airfield projects, that is a lot of money for not much return.

Unless Bridgepoiint are now diversifying into long term investments, I remain sceptical that this is the best direction for the city and the airport. It's going to take a shit load of Ryanair flights to Lodz or Wroclaw and plenty of Burger Kings and Boots outlets to get this sort of investment back.

The fact that the council control planning permission and have retained the airport name mean nothing. Aviation is a global business, not one designated by an LS17 postcode, or someone who is ex YEB.

The due dilligence phase will be interesting. Let's see if the French backers are still interested this time next week.

More interesting is how transparent the proceeds from the sale to LCC will be in terms of how it is spent.

[rich-leeds]

'the Leeds City Council will retain planning control' - Like every other civil airport in the UK then! It would be big news if it didn't! Pretty meaningless statement, but helps to stop misinformed press stories I guess.

[mark*ie]

From Todays YEP.

Councils reveal their preferred buyer for international airport

By Howard Williamson

The five councils who have shares in Leeds/Bradford International Airport have announced their preferred buyer – Bridgepoint infrastructure fund which was involved in the privatisation of Birmingham International Airport.
Bridgepoint was chosen from a short list of five bidders, with Barclays Private Equity and Churchills Airport as the reserve bidder.
Both bidders have six working days to confirm their bid price and the sale is expected to be completed by the end of this month.
Each of the five councils – Leeds, Bradford, Wakefield, Kirklees and Calderdale – held special meetings to agree the preferred and reserve bidders.
Bidders had to produce a business plan and demonstrate the level of planned investment in the airport.
A joint statement from the five councils said: "Both the preferred and reserve bidders have developed ambitious plans to sustain passenger growth and invest significantly in the airport over the next 10 years.
"Much of this will focus on improving the airport's customer facilities and infrastructure, expanding the route network and ensuring the airport can compete efficiently with others in the region.
"Bridgepoint have clearly demonstrated not just their financial standing and their plans for growing and developing the airport but also their commitment to the region as a whole and the airport's crucial part in its economy.
"Council officers have worked hard to make this sale a success and secure the best outcome for council tax payers and I know they are looking forward to working with the two bidders and bringing the sale to completion."
The airport will continue to be under the planning control of Leeds City Council and all five councils will retain a "special share" in the company.
Last Updated: 05 April 2007