Thanks for the kind words CR7.
I believe the £36m number quoted (rounded up to £40m by the media!) represents the net balance sheet of the company at the moment, i.e. the net book value of its assets less liabilities. As an indicator of the likely sales price, it is next to useless given any deal is going to be transacted on the profit generating potential of the business over the mid-long term + the capital growth of the business.
The last LBA-esque airport to move out of council control was NCL back in spring 2001. Then Copenhegan Airports Group paid £145m for a 49% stake in the business at a time when the airport was just above the 3m pax p/a threshold. Allowing for the fact the price will have factored in the lack of a controlling interest, that valued the airport at c.£300m in total. On balance a similar valuation for LBA today is not unrealistic. On the up side is the fact the regional aviation business has grown since 2001, the fact LBA is the last remaining opportunity of its size in the UK and the clear evidence of a significant amount of the local catchment currently using MAN. On the downside, capitalising on the potential of the business needs investment in the airport landside and airside infrastructure and improved transport links.
Interestingly, Ernst & Young also acted for the authorities in the North East and it was they who brokered the NCL deal with Copenhegan.
With the political obstacles out of the way, the fundamental question is who will bid and will the authorities select the "right" bidder.
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