Chilling comments taken from the Infratil annual report earlier in the year :
'Infratil’s two remaining European airports continued to experience very
difficult trading conditions. Notwithstanding excellent cost control, losses grew as traffic continued to weaken.
The airports in Glasgow and Kent represent 4% of Infratil’s assets and contributed an EBITDAF loss of £5 million (NZ$10 million) for the year.
Management is very aware of this disproportionate value/contribution aspect and the situation is receiving the urgent attention it warrants. There are several solutions possible, but regrettably the preferred one, an improving European aviation scene lifting activity and hence income, seems the least likely.'
They will sell,the european airports division is not even mentioned in some of their presentations (so they can 'hide' their disappointing performance). Ok its only 4% of group assets but in my estimation they are planning an exit strategy.The question is - who in their right mind would buy in this environment ?
Last edited by leeds 65; 16th Oct 2011 at 17:51.