london.jpg

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.”

Related

About admin

x

Check Also

twitter_inc-earnings.jpg

Twitter Inc’s user growth stalls as sales forecast falls short of estimates

Twitter Inc. said it didn’t add new users in the fourth quarter and forecast first-quarter ...

0211manulife.jpg

Manulife Financial Corp profit slides 62% as energy investments take a hit: ‘A disappointing year’

TORONTO – Energy exposure hit the conclusion of Manulife Financial Corp. in the fourth quarter, ...

gold_coins.jpg

Pension funds hope for better deal in de-risking marketplace

A pension risk exchange – an online marketplace that aims to create those defined benefit ...