AER RIANTA and its joint venture partner, NatWest Ventures, have completed their due diligence investigation of Birmingham Airport and the deal, under which the joint venture will buy 40 per cent of the airport, is expected to be completed shortly.
No figures have been revealed for what Aer Rianta and NatWest Ventures will pay for their joint 40 per cent stake, but industry sources have suggested that the joint venture will pay about £45 million. Seven local councils are retaining a 51 per cent stake in Birmingham Airport.
Similarly, Aer Rianta's contribution to the joint venture has not been revealed but chief executive Mr Derek Keogh has said that Aer Rianta's contribution "is substantially less" than NatWest, with Aer Rianta being given credit for the technical knowledge that it brings to the joint venture.
The expected completion of the Aer Rianta-NatWest investment comes as Birmingham Airport has reported strong growth for the year to the end of last March. Turnover was up 5 per cent to £60.2 million sterling but a substantial improvement in margins meant that the airport was able to boost its pre-tax profits 13 per cent to £13.2 million sterling.
Passenger numbers through the airport were up over 8 per cent to 5.45 million, with all of the growth coming from scheduled traffic, which makes up 59 per cent of the airport's traffic.
Charter passengers fell fractionally but freight traffic grew up over 19 per cent to 22,315 tonnes. The year saw the beginning of an American Airlines daily service to Chicago and a British Airways New York-Toronto route.
The investment by Aer Rianta NatWest comes as Birmingham Airport is planning a major expansion. Airport managing director, Mr Brian Summers said that following the investment by Aer Rianta and NatWest, "we can now progress our detailed planning ready for implementation as the corporate restructuring is completed and financing for the development is available. By 1997 I anticipate seeing real on-site work commencing".
In the expansion, which is expected to be implemented over a number of years, Birmingham Airport's terminal buildings would double in size.
