Australian investment giant takes control of London City airport 

Australian investment firm Macquarie is taking majority control of London City Airport for an undisclosed sum.

The acquisition of the 50% stake takes Macquarie’s total ownership in London docklands airport to 75%. 

Macquarie agreed in June to acquire a 25% shareholding in London City from Ontario Teachers’ Pension Plan.

The additional 50% equity stake is being acquired from Alberta Investment Management Corporation and OMERS.

The government has approved London City’s plans to increase passenger numbers to 9 million from the previous 6.5 million capacity.

London City has applied to the Civil Aviation Authority for approval to operate a broader range of aircraft to enable the increased passenger numbers with fewer flight movements.

The potential introduction of new aircraft is expected to expand the range of leisure destinations offered as well as accelerating the transition of airlines’ fleets to more sustainable, quieter new generation aircraft, according to the company.

Macquarie has a 55% stake in Bristol airport and  26.5% in stake in Birmingham airport.

The firm last year stepped away from from AGS Airports, the owner and operator of airports serving Aberdeen, Glasgow and Southampton, after a decade of ownership.

Macquarie Asset Management managing director Sara Sulaiman said: “Our additional investment in London City airport underscores our commitment to the UK’s aviation sector. 

“Britain’s airports are a key driver of economic growth and demand for air travel continues to increase year-on-year. 

“We look forward to working in partnership with London City airport’s management team and Wren House Infrastructure, who will remain as shareholder, to support the airport in meeting future demand as it increases the number of passengers, launches new routes to destinations across the UK and Europe, and further enhances the experience for passengers.”

Airport chief executive Alison FitzGerald added: “London City is already the airport everyone loves, recognised for delivering excellence in customer service alongside unrivalled speed and convenience. 

“This further investment from Macquarie Asset Management is a strong endorsement of our strategy to introduce new larger, quieter and cleaner aircraft, deliver more route choices for our customers, benefit our airline partners, and contribute even more to the UK economy.”