Southampton Airport is getting a new owner after a major £1.5 billion transaction. The airport, along with Glasgow and Aberdeen airports, was sold by AGS Airports, which was a partnership between Spanish construction giant Ferrovial and the Australian investment firm Macquarie. The new owner, AviAlliance, is an airport management firm that belongs to Canada’s Public Sector Pension Investment Board (PSP Investments). This deal includes a £900 million purchase price, with AviAlliance also taking on £653 million of debt linked to the airports.

New Ownership and Expansion Plans

This agreement marks a significant shift for Southampton, Glasgow, and Aberdeen airports, which together serve over 10.8 million passengers each year. AviAlliance, known for its airport expertise and focus on growth, has plans to enhance operations at each of these airports. The deal is expected to be finalized in the first quarter of 2025, once all regulatory checks and approvals are completed.

AviAlliance has a strong record of managing airports and delivering positive passenger experiences. Established in 1997 and later acquired by PSP Investments in 2013, AviAlliance has continued to expand its portfolio of transportation infrastructure. This acquisition of AGS Airports fits well within AviAlliance’s expertise and growth strategies.

A Decade of Investment by AGS Airports

Since 2014, AGS Airports, through a partnership between Ferrovial and Macquarie, has invested heavily in enhancing airport facilities and services at Southampton, Glasgow, and Aberdeen. Macquarie’s head of infrastructure, Martin Bradley, noted that around £250 million had been invested by AGS to improve passenger experiences and airport operations across the three airports. These investments included modernizations and other initiatives to create a more enjoyable journey for travelers.

Bradley remarked on the successful work done in partnership with Ferrovial, saying: “Since 2014, we have worked together to create a better experience for passengers at all three airports. This investment has set a strong foundation, and we are happy to hand over the responsibility to AviAlliance to lead the next phase of growth.”

AviAlliance’s Vision for Future Growth

AviAlliance plans to build on the strong foundations set by AGS and support growth for Southampton, Glasgow, and Aberdeen airports. Gerhard Schroeder, managing director of AviAlliance, shared that his team is ready to focus on expanding the airports’ route networks, improving the overall passenger experience, and advancing each airport’s sustainability goals. Schroeder highlighted the importance of these airports, especially in providing crucial links for communities in Scotland and southern England. He added that AviAlliance’s extensive experience in managing airports would benefit all three locations in reaching their full potential.

AviAlliance’s focus on long-term growth and commitment to enhancing services aligns with PSP Investments’ strategy of investing in infrastructure that provides stable and sustainable benefits for communities. PSP Investments, which owns other transportation assets in the UK, like Forth Ports and Angel Trains, has a solid track record in supporting operations that directly serve the public and facilitate vital connections across regions.

Recent Developments at Southampton Airport

Southampton Airport has seen significant updates in recent years, including a controversial £17 million runway extension project. This extension, completed in 2024, has enabled the airport to handle larger aircraft, expanding its capabilities and potential destinations. This investment has also paved the way for Southampton to cater to more diverse flight needs, enhancing travel options for passengers in the region.

Andy Cliffe, CEO of AGS Airports, commented on the recent progress made under the partnership with Ferrovial and Macquarie. He expressed gratitude for their support, emphasizing how this partnership allowed AGS Airports to achieve substantial growth and operational improvements at all three airports. Cliffe acknowledged their efforts in helping to build up Southampton, Glasgow, and Aberdeen airports to better serve both travelers and nearby communities.

A New Era of Development Under AviAlliance

With AviAlliance taking over ownership, Southampton, Glasgow, and Aberdeen airports are set to enter a new phase of development. AviAlliance aims to leverage its expertise to foster growth, upgrade facilities, and maintain excellent passenger service standards. Schroeder reiterated AviAlliance’s dedication to long-term success, stating that their team is enthusiastic about supporting each airport’s route expansion and sustainability initiatives.

AviAlliance is particularly well-suited for this role, as the company specializes in managing airports and has a proven record of success in the industry. Its dedication to continuous improvement and operational excellence will likely bring many benefits to these airports and the communities they serve.

Key Takeaways from the Deal

Ownership Transition: AviAlliance has purchased AGS Airports, including Southampton, Glasgow, and Aberdeen airports, from Ferrovial and Macquarie for £900 million, plus £653 million in debt.
Passenger Reach: Together, these three airports serve over 10.8 million passengers each year, connecting communities in Scotland and southern England to various destinations.
Future Plans: AviAlliance plans to enhance operations, increase route offerings, and improve sustainability practices at all three airports.
Investment Legacy: Over the past decade, AGS Airports invested around £250 million in these airports, laying a strong foundation for future growth.
Runway Expansion: Southampton Airport’s recent £17 million runway extension allows for larger aircraft and more travel options, supporting the region’s connectivity needs.

The transfer of Southampton, Glasgow, and Aberdeen airports to AviAlliance marks a fresh start for these key UK airports. With AviAlliance’s background in airport management and its focus on long-term growth and service quality, passengers can expect improvements in both experience and connectivity. The new ownership brings a promise of steady growth, upgraded services, and strengthened community links.