Two of Scotland's largest airports sold in £1.5 billion deal

AGS Airports, which also includes Southampton, has been bought by AviAlliance, which has stakes in airports in Athens, Dusseldorf, Hamburg and San Juan in Puerto Rico.

It is part of the Canada-based Public Sector Pension Investment Board (PSP Investments), which also has a majority stake in Edinburgh-based Forth Ports.

The sale is expected to be completed between January and March and comes ten years after AGS - jointly owned by Macquarie Asset Management and Spanish construction firm Ferrovial - bought the three UK airports from Heathrow Airport for £1.05bn including debts.

In the announcement on Wednesday, AGS changed hands for £900 million, while AviAlliance will also take on £653 million in debts.

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The deal could be crucial in helping to boost Glasgow’s fortunes after it has struggled to rebuild passenger numbers following the Covid pandemic at the expense of its Edinburgh rival, which is enjoying record traffic that has increased to nearly double Glasgow’s.

Europe’s biggest airline Ryanair has focused its Scottish expansion in Edinburgh, which also boasts a multitude of US routes at a time when Glasgow is still seeking to restore a New York link.

French airports group VINCI took a controlling stake in Edinburgh Airport - Scotland’s busiest - from owner Global Infrastructure Partners in a £1.27bn deal in April.

AviAlliance managing director Gerhard Schroeder said: “As a seasoned airport investor and manager with in-depth industry expertise, AviAlliance will enable each airport to realise their full potential.

“We are committed to supporting the airports over the long term to expand their route networks, further improve the passenger experience and implement the airports’ sustainability strategy.”

PSP Investments managing director and global head of infrastructure Sandiren Curthan said: “We are a significant investor across several sectors in Scotland and more broadly, the United Kingdom, with over £10bn of investments.

“Our strategy consists of investing in sectors where PSP Investments has strong expertise and a track record of delivering value for our beneficiaries.

“Airports is a sector which fits that strategy given AviAlliance’s deep operational expertise.

“We are delighted to add AGS Airports to our infrastructure portfolio and look forward to working with our key stakeholders to improve services to the communities in which AGS Airports operate, recognising the critical role these airports play in supporting economic growth in Scotland and England.”

AGS Airports chief executive Andy Cliffe said: "Over the past ten years, Macquarie and Ferrovial have played a central role in unlocking our full potential.

“Their close partnership with the teams across our three airports ensured we had the support to invest in our passenger offering while improving our operations.”

AGS’ sellers said they had invested £250m on the three airports during their ownership, including £20m to boost Aberdeen’s terminal space by half, and a £17m runway extension at Southampton.

They also spent £9m on a revamp for wide-bodied aircraft at Glasgow Airport, dedicated pick-up and drop-off area, new car rental centre, expanded security facilities, and retail and lounge improvements.