Game-changer - Manston to stop being an airport

Manston and Prestwick have proved hard to sell. Unsurprisingly. Infratil wants to sell them because they're failures - and that's why they're hard to sell.

Infratil has been losing millions every year, for years, and they're eager to staunch the flow. The penny seems to have dropped that these two failed airports would be easier to sell... if they weren't airports.

So Infratil is putting the word out that they're prepared to stump up cash to help potential buyers transform the airports into, er, something they actually want to buy.

Do feel free to use the comments section to pass on any helpful suggestions for Manton's future... theme park... solar farm... race track... nature reserve...

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KLM-Manston: analysis

Regular readers will recall that the last time KLM showed any interest in Manston, they were being lured by the promise of £600,000 - money which Manston and KCC were trying to prise out of the Government's Regional Growth Fund. The Government said "No", and KLM faded into the background. I do hope this new service isn't being subsidised from the public purse (national, county or district).

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KLM-Manston: reactions

Reactions from Sir Roger Gale MP, Laura Sandys MP, Sandra Matthews-Marsh (chief executive at Visit Kent), David Foley (east Kent Chamber of Commerce chief executive), Cllr Bob Bayford (Thanet Conservative Group), and Cllr Clive Hart (Leader of Thanet District Council).

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KLM-Manston: news reports

Reports from the national and local press, and a couple of interesting takes on the story from the trade press.

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No sign of Prestwick airport sale

The New Zealand company which owns Prestwick has said there is no sign of a buyer for the airport, and its value has fallen. Infratil put its two UK airports, which include Kent, up for sale in March this year.

However it said the sales process for both had been "unsuccessful to date". As a result, Infratil said it had taken an impairment charge of £22m, which now values Prestwick at about £14.3m and Kent at £7.6m. Infratil said that it would "continue to seek a buyer for the airports and work with local stakeholders to review alternatives". 

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Infratil Airports Europe; right ingredients wrong outcome

Infratil's assessment of their European airports, in their own words...

In the 1990s Australia and New Zealand were amongst the first countries to sell state-owned airports and to allow their commercial operation. The resulting value uplift encouraged Australasian investors to look at markets where similar developments were occurring, which led to Europe.

Infratil invested in Prestwick, Kent and Lübeck airports and purchased an option over an airport near Berlin. These airports were acquired at well below replacement cost as rapid growth in European air travel made it likely that their capacity would soon become needed and valuable.

Kent for instance cost less than £20 million and the next London runway will cost over £2 billion (Mayor Boris Johnson’s preferred site in the Thames Estuary is likely to cost over £20 billion).

Notwithstanding this enormous potential, Infratil has now called it quits. European air traffic growth has slowed so that the need for additional airfield capacity is postponed, and Infratil’s assessment of the relative benefits of waiting (and continuing to meet operating cost) versus refocussing elsewhere have favoured exit.

Infratil Update September 2012

All aboard the 4.20am flight to Amsterdam?

Let's have a quick look at the latest exciting news to come from Manston airport. The suggestion is that KLM's decision as whether or not to run a twice a day service between Manton and Schipol will be influenced (but not decided) by the response to Manston's online survey.

• Charles Buchanan says that KLM would have a plane parked at Manston overnight, ready to fly to Schipol each morning.
• Charles Buchanan has often said that planes only make money when they are in the air, so it follows that KLM would want their "Manston" plane back in Schipol bright and early so that it has plenty of working (flying) hours ahead of it through the rest of the day.
• Schipol Airport is effectively closed between 10pm and 6am, and Amsterdam is one hour ahead of us (at the moment).
• The flight time from Manston to Schipol would be about 40 minutes.
• To arrive in Schipol at 6am (local time), KLM's "Manston" plane would have to leave at 4.20am (local time).

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Infratil is selling Manston, but wants to buy Stansted. Why?

In March 2012, Infratil announced that Manston was up for sale because it wanted to "refocus its investment profile" and concentrate on retail, production and supplying gas and electricity. What they didn't mention in their press releases was that Manston had lost them money hand over fist ever since they bought it.

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Rival group enters battle for Stansted airport

A consortium led by an Australasian investment manager has emerged as an early rival to Manchester Airports Group in the £1bn battle for Stansted airport.

Morrison & Co, which operates out of New Zealand, Australia and Hong Kong, is heading a bid team that also includes the New Zealand Superannuation Fund and Infratil, a Wellington-based infrastructure investor.

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Night Flights vote - press coverage

Vote against Manston Airport night flights plan

BBC 25th May 2012

Plans for night flights from Manston Airport in Kent have been opposed by Thanet District Council. At a meeting on Thursday, the Labour-controlled council voted against all night flights to or from the airport. Charles Buchanan, the airport's chief executive, said:

"We are disappointed the council is not supporting the airport as much as it could."

In March, owners Infratil announced plans to sell Manston and Glasgow's Prestwick Airport.

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Night Flights vote

TDC listened, and said "No" - will Mr Buchanan get the message?

On the face of it, it looks like a straightforward example of democracy at its best.

If only.

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Location matters more than night flights

Night flights are not "make or break" for Manston airport, it will struggle regardless - that's the claim from Phil Rose of the No Night Flights group, which is campaigning against proposals to introduce scheduled flights between 11pm and 7am from Manston airport.

Mr Rose poured scorn on claims by the district's Conservative group that ending restrictions would improve the airport's fortunes.

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Planning permission for Manston

Manston airport sale "a chance to introduce proper planning"

News that Manston airport is up for sale is confirmation that the local infrastructure is not sufficient to sustain an airport, according to one of the most respected campaign group in the country.

Manston’s New Zealand owner, lnfratil, announced it was selling the site because it wanted to “refocus its investment profile" and concentrate on retail, production and supplying gas and electricity. The move puts 123 jobs at risk.

The Campaign to Protect Rural England says the sale is an ideal chance for Thanet council to put into force planning regulations protecting the interests of residents

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Manston closure full of surprises

It was nothing to do with night flights, it was an investment decision (surprise, surprise), Labour feels vindicated and criticises Tories (surprise, surprise).

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Airport boss calms jobs fears after Manston is put up for sale

Manston airport boss Charles Buchanan has insisted it will be "business as usual" at the airport, following the shock announcement of its sale last Thursday.

A statement from the airport said it was a decision that had arisen from operator Infratil "refocusing" its investment profile.

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Airport CEOs upbeat

Two minds with but a single thought

Iain Cochrane, chief executive of Glasgow Prestwick Airport:

I believe this is an excellent opportunity for us to attract new investment into the airport to provide the stimulus for future growth.

STV 8th March 2012

Charles Buchanan, chief executive of Manston Airport:

This represents an opportunity for Manston to ... attract new investment into the airport and stimulate the growth needed to make it a success in the future.

kentonline 8th March 2012

Reality hits home, Infratil leave town

Delusion has finally been swept away by the onslaught of reality and Infratil are throwing in the towel. This has been a long time coming, and Nostrildamus predicted it in November 2010.

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Manston Airport has been put up for sale. Bosses at Kent International Airport told staff at 10.30am yesterday (Friday) morning. The shock decision was made by owners Infratil. The New Zealand-based company also plans to sell its airport at Prestwick near Glasgow.

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Upping the ante

Well, here's a surprise - I asked Manston and Infratil and their spin doctors to justify their absurd job figures, and there's been absolute silence. Maybe it's just me - maybe they just won't talk to me. Maybe it would help if YOU asked them...

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Mixed reaction to consultation

Thanet council's public consultation on Manston airport's night flight proposals has attracted 700 responses. The views given will help the council form its response to plans by airport operators Infratil to host an average of eight flights a night at Manston.

The authority's consultation was scaled back from plans to engage market research experts MORI and ask for views from other districts when Thanet council took legal advice that it was only a "consultee" on the plans and had no legally binding say in the matter.

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Open letter, simple question

Dear Charles Buchanan (CEO Manston), Maxim PR (Manston's spin doctors), Infratil (Manston's owners), and anyone who believes Manston's job forecasts:

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Infratil's ex-CEO dies

Infratil founder Lloyd Morrison died in Seattle this morning after a three-year battle with cancer. He was 54.

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