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Scotland pays Infratil £1 for Glasgow Prestwick airport

Infratil, the Wellington-based infrastructure investor, has sold its unprofitable Glasgow Prestwick Airport to the Scottish government for 1 British pound.

The transaction was completed over the weekend and will see the airport transferred to TS Prestwick Holdco, an entity wholly-owned by the Scottish Ministers, for a cash consideration of 1 pound. The purchase price reflected the need for more investment, and the Scottish government is seeking a commercial partner to operate the airport on its behalf, it said in a statement yesterday.

"This acquisition secures continuity of service and we will now begin work with our local partners on developing our vision for the business so we can maximise its contribution to the local, regional and national economy," Deputy First Minister Nicola Sturgeon said. "As we stressed at the start of this process, Glasgow Prestwick Airport remains fully open for business and existing staff remain employed at the airport."

Infratil has now exited its two British airports, the other being last month's sale of the Manston Airport in Kent, in what it described earlier this month as "very poor" financial outcomes brought on by the global financial crisis.

Chief executive Marko Bogoievski said the company's preference in selling the Glasgow Prestwick hub was to find a new owner with the capacity to support its future success.

"We believe that a Scottish government acquisition achieves that objective and Infratil is very pleased to have successfully completed the transaction," he said in a statement.

Infratil's shares fell 0.4 percent to $2.43 yesterday, and have gained 7.1 percent this year.


Comments and questions

It pays to stick to the knitting in your own back yard

So the real story is that Infratil can only make money from monopoly airports i.e. Wellington.

Prestwick Airport has been a dog since the 1970s. Would have been surprised if Infratil had made any money from it. The only two things Prestwick had going for it were the long runway for emergency use by US aircraft and as a backup for Glasgow Airport when fogbound.

Oh, and Elvis Presley.

No wonder the investors in infratil have have lost all their enthusiasm
for the stock long ago with hair brained investments like this,could have been a good stock,had the idiots making the decisions been held to account at some stage earlier on.

when you rebrand an airport with the slogan "pure dead brilliant" and as a mascot in the lounge bar have a drunk kilt wearing Scott comatose on the floor with a bottle of Whiskey you wonder who is making the decisions