Canadian pension plans buy London City Airport, but the rich price could drive away its biggest customer

A British Airways aircraft, operated by British Airways Plc, prepares to land at London City Airport, near Canary Wharf.

London City Airport’s sale to some Canadian-led group of investors at a steep premium received a cool reception from both its biggest user and the top U.K. airline, which said they will not accept the higher fees that might be imposed to warrant the price.

Willie Walsh, ceo of British Airways owner IAG SA, said Friday that an offer reckoned to be valued at 2 billion pounds (US$2.8 billion) could wipe out already-thin margins.

“We’re not really ready where a new owner can simply jack up prices and we’ll continue doing what we’ve done historically,” Walsh said. “If they are doing increase charges we’ll execute our strategy and lower capacity. When the routes to London City aren’t profitable, then we won’t visit.”


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