Ailing airport arm sold off at Go-Ahead
GO-AHEAD, the bus and train group, said yesterday it had finally ditched its loss-making aviation arm, selling the airports handling business off in two separate deals.
French rival Servisair is paying a nominal fee to extend its UK network to over 24 airports, and will also run Gatwick’s passenger lounge and Stansted’s cargo operations.
Meanwhile, Dubai-based Dnata – part of the Emirates group – is paying £15m to take on the cargo and ground handling operations at Heathrow and Manchester airports, marking its first entry into the UK airport handling arena.
The sale will allow Go-Ahead, which runs lucrative commuter train franchises and bus companies around the capital, to focus on growing those core areas. The operator had posted a loss of £5.2m from its airports Aviance arm for the year to June, but will hold on to some activities at Heathrow and its airport parking business.
Keith Ludeman, who became chief executive of Go-Ahead three years ago, has been trying to axe the arm since he took the helm. “We are pleased to be selling these operations,” he said yesterday.
The news that Dnata – the travel services company owned by Investment Corporation of Dubai – will take on the acquisition comes after the emirate shook markets worldwide last month.
State backed investment group Dubai World said it was seeking a “standstill” agreement on $59bn (£32bn) of loans it has run up.