No Private Buyer For The Facility Found In Over Two Years On The Market

Scotland's Deputy First Minister Nicola Sturgeon has announced the Scottish Government is entering into talks to safeguard around 1,400 jobs by bringing Prestwick Airport into public ownership.

Prestwick Airport has been on the market since March 2012. The Scottish Government, in partnership with Scottish Enterprise and South Ayrshire Council, has been working with current owners Infratil to help find a private buyer. Despite those efforts and interest from potential investors, the process has now reached a point where it’s clear that no private buyer will be able to take the purchase forward in an acceptable timescale to the current owner.

“Prestwick Airport’s importance to the local Ayrshire and wider Scottish economy cannot be overstated – and it is vital that all efforts are made to keep the airport open," Sturgeon said. “Around 300 people depend directly on the airport for employment and, in total, there are around 1,400 people whose jobs depend on or are associated with the airport. Unemployment in Ayrshire is already above the Scottish average and the loss of Prestwick Airport would exacerbate this situation.

“Taking account of the aerospace cluster at Prestwick, there are a total of 3,200 jobs directly or indirectly associated with the airport. Whilst the aerospace jobs are not directly dependent on the airport, it acts as an anchor for these businesses. It is undoubtedly the case that this important part of the Ayrshire economy would be less secure in the future without the continued operation of Prestwick Airport.

“Prestwick also has important resilience capabilities that provide alternative options to Glasgow and Edinburgh in the event of severe weather conditions.

“Today, I am announcing that the Scottish Government has advised the current owners Infratil of our intention to commence a process towards acquisition of Prestwick Airport. Over the next few weeks we will focus on due diligence, legal and commercial issues around public ownership and the development of a business plan that will allow Prestwick to thrive once again. I want to stress to staff and passengers booked to fly from Prestwick that in the meantime it is business as usual at the airport. The airport is, and will continue to be, open for business. Once a transaction has been completed, I will make a further statement to Parliament. With perseverance, patience and innovative thinking Prestwick can have a positive future as part of the wider Scottish aviation industry.”

Ministers are entering into negotiations with Infratil over the potential acquisition of Prestwick Aviation Holdings Limited and its subsidiaries, subject to the completion of due diligence and the appropriate legal processes. During that process, Infratil would continue to operate the airport as a going concern to maintain its assets and keep it open for business.

“South Ayrshire Council warmly welcomes the announcement today from the Deputy First Minister. Prestwick Airport and the engineering jobs that it supports are hugely important for Ayrshire and for Scotland as a whole," said Councilor Bill McIntosh, Leader of South Ayrshire Council. "We look forward to working closely with the Scottish Government to ensure a long-term future for Prestwick Airport that builds on the substantial contribution it already makes to the Scottish economy.”

“In March 2012 Infratil announced its intention to sell its two UK airports, Glasgow Prestwick Airport and Manston Kent Airport as part of a process to refocus its investment profile," said Marko Bogoievski, Chief Executive Officer at Infratil. “Recognizing the importance of the airports to their local communities, Infratil’s preference has been to secure a new owner with the capacity to support their future success. We believe that a Scottish Government acquisition of Glasgow Prestwick Airport achieves that objective and will work proactively with the Scottish Government over the next six weeks towards achieving completion of a transaction.”

In a statement posted on the Glasgow Prestwick Airport website, airport officials said "Glasgow Prestwick Airport remains totally focused on looking after our customers and all flights at the airport and other airport activity continue as normal, without change.
 
"We have maintained a business as usual approach to the operation of Glasgow Prestwick Airport since it was put up for sale in March 2012.  This approach will continue as we work with the Scottish Government towards achieving completion of a transaction."

The Scottish Government already has responsibility for 11 airports and others are owned by an operated by local authorities.

FMI: www.glasgowprestwick.com, www.scotland.gov.uk