BAA sells Gatwick airport

London - British airport operator BAA on Wednesday said it is selling London Gatwick airport to Global Infrastructure Partners for £1.51bn.

BAA has been ordered by Britain's Competition Commission to also dispose of London Stansted airport and either its airport in Edinburgh or Glasgow in Scotland, a ruling the company is appealing. BAA is allowed to keep London Heathrow airport.

BAA, owned by a consortium headed by Grupo Ferrovial SA of Spain, said it would use the proceeds to pay off debt, which stood at £9.6bn at midyear.

Global Infrastructure Partners, based in New York, also owns a 75% stake in London City Airport.

"We will upgrade and modernize Gatwick Airport to transform the experience for both business and leisure passengers," said Michael McGhee, the GIP partner who led the acquisition.

The sale, subject to clearance by regulators, is expected to be completed in December.

Gatwick, 42km south of London, opened in 1958. It claims to be the world's busiest single-runway terminal with 32.2 million passengers in the year to September.

It ranks second to Heathrow among Britain's most-used airports.

- AP