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Infratil Airports Europe; right ingredients wrong outcome

Infratil’s assessment of their European airports, in their own words…

In the 1990s Australia and New Zealand were amongst the first
countries to sell state-owned airports and to allow their commercial
operation. The resulting value uplift encouraged Australasian investors
to look at markets where similar developments were occurring, which led
to Europe.

Infratil invested in Prestwick, Kent and Lübeck airports and
purchased an option over an airport near Berlin. These airports were
acquired at well below replacement cost as rapid growth in European air
travel made it likely that their capacity would soon become needed and
valuable.

Kent for instance cost less than £20 million and the next London
runway will cost over £2 billion (Mayor Boris Johnson’s preferred site
in the Thames Estuary is likely to cost over £20 billion).

Notwithstanding this enormous potential, Infratil has now called it
quits. European air traffic growth has slowed so that the need for
additional airfield capacity is postponed, and Infratil’s assessment of
the relative benefits of waiting (and continuing to meet operating cost)
versus refocussing elsewhere have favoured exit.

Infratil Update September 2012

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  1. Every Thanet councillor should be made to comment on this.[Avid Ramsgate fan]

  2. Oh dear is see that the owners of Stansted have indicated it could be run for 5m less. A certain Mr O’Leary has already claimed the regulatory accounts (for Stansted) are out of "Noddy land". This is a leaf straight out of KCC/TDC’s book then – when they just nodded through development for the airport along with tax payers money.For those wishing to know more read the front page of the Daily Telegraph Business – it’s priceless.I am now of the opinion that the Aircraft Industry (as a whole) cannot be trusted and do collude at all levels. I am now wondering if the KLM survey and support is worth the paper it was not printed on.[slipway bob]