Saudi Arabia’s PIF to buy stake in London’s Heathrow Airport, joins Singapore’s GIC, Qatar wealth funds in ownership
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Plus-sized passenger gets stuck in first class plane seat for 3 hours
Plus-sized passenger gets stuck in first class plane seat for 3 hours
The Spanish company’s exit ends almost two decades of ownership in the UK airport. It bought a majority in the airport operator, then called BAA Plc, for US$18.8 billion in 2006, eventually reducing its stake to the now 25 per cent.
Long-term partner
Ferrovial rose as much as 3.2 per cent to €31.94 in Spanish trading. Analysts at Citigroup Global Markets said the planned disposal is positive for the infrastructure company “as the cash proceed should help to reduce net debt and any potential shareholder distribution through dividends.”
PIF said the purchase is “in line with its strategy to support the business as a long-term partner, calling Heathrow a “world-class airport.”
While the UK airport remains a major global gateway, its growth prospects have been stunted by the lack of progress on a third runway, restraining capacity at Heathrow while destinations like Turkey, Qatar and Dubai aggressively expand their airports, often running them around the clock.
![After owning the UK travel hub for 17 years, Spanish infrastructure giant Ferrovial announced it is offloading its remaining 25 per cent stake in London’s Heathrow Airport. Photo: AFP](https://cdn.i-scmp.com/sites/default/files/d8/images/canvas/2023/11/29/b10c5048-ecc5-420f-b226-8478aa98ec74_9a200e6a.jpg)
Prized assets
PIF owns a stake in Aston Martin, the UK carmaker best known as the vehicle of choice for James Bond.
A ruling by the UK competition watchdog last month on landing fees also left both airlines and Heathrow dissatisfied: while carriers had wanted charges to be lowered, Heathrow Airport had sought to collect higher fees.
Heathrow is a major destination for flights from the Gulf region, with Emirates, Qatar Airways and Etihad Airways PJSC all serving the hub with multiple arrivals a day.
Saudi, Singapore wealth funds report steep investment losses amid market slump
Saudi, Singapore wealth funds report steep investment losses amid market slump
Saudi Arabia is in the process of expanding its airline industry, seeking to attract more business and tourism to the country. It recently created Riyadh Air, a new airline that will operate in addition to existing flag carrier Saudia.
The Heathrow deal is subject to approvals, as well as the rights of existing shareholders to join the transaction as sellers or buyers under a prior shareholder agreement.
Ferrovial said it remains committed to advancing its airport business. It owns a 50 per cent share in Aberdeen, Glasgow and Southampton airports in the UK, 60 per cent of Dalaman Airport in Turkey and 49 per cent of JFK’s New Terminal One.
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