OTPP to sell its airports – a brief opportunity in a turbulent world, or is there more to it?
A sudden flurry of activity in an otherwise barren year has resulted in three UK airports being sold, and another three being put on the market in Nov-2024.
Firstly, AGS Airports was sold to AviAlliance, which is owned by the Canadian pension fund PSP Investments. Then, before the dust had settled, another Canadian pension fund (OTPP) announced that it would offload its interest in another three UK airports, plus two in mainland Europe. OTPP is a majority/minority shareholder in all of them; it owns none outright.
The reasons for this decision of OTPP's are unclear.
It may have been prompted by the AGS sale; it could be because the time is right (it often isn't in the airports business, and if you don't make hay while the sun shines you never will), or it might have been influenced by attempts being made in Canada to encourage the country's pension funds to invest in domestic infrastructure, including airports.
Whatever the case, it will be fascinating to see who takes on these disparate airports (two UK regionals, a London STOL business airport and two capital city facilities in Europe) when none is owned outright by OTPP, and with a new government in power in the UK - one which historically is no friend of air travel, but which has not done them any great harm - at least, so far.
The first reaction - a move by the Danish Finance Ministry to acquire 98% of Copenhagen Airports - is not likely to be repeated elsewhere.