BAA has announced it is to sell Gatwick Airport to investment fund Global Infrastructure Partners.

BAA has today announced (21 August) that it has agreed to sell Gatwick Airport to Global Infrastructure Partners (GIP) for £1.51 billion.

BAA currently owns Heathrow, Stansted, Edinburgh, Glasgow, Aberdeen and Southampton as well as Gatwick Airport, the UK’s second largest airport.

GIP already owns a 75% stake in London City Airport.

After an inquiry conducted by the Competition Commission (CC) concluded that customers were suffering from a lack of competition at the UK’s airports, the CC ordered BAA to sell Gatwick, Stansted and either Glasgow or Edinburgh airports.

Despite the sale of Gatwick, BAA is appealing the CC’s order to sell the other airports.

The completion of the sale is scheduled for December and the proceeds of the sale will be used to repay part of BAA’s existing debt, which was £9.6bn in June this year.

Colin Matthews, BAA’s Chief Executive, said: “BAA is changing and today’s announcement marks a new beginning for both Gatwick and BAA.

“We wish Gatwick well for the future and are confident that the airport will flourish under new ownership. BAA will focus on improving Heathrow and our other airports.”

With the sale of Gatwick, commentators hope the increased competition between airports will improve facilities and prices for customers.