Scots airports to expand as AviAlliance invests £350m – Daily Business

Glasgow and Aberdeen airports are set for expansion as part of a £350 million investment by owners AviAlliance.

The airport management company has announced its single largest capital investment in AGS Airports since its formation in 2014.

AviAlliance has also named former Forth Ports CEO Charles Hammond OBE as the new chair of AGS, which includes Southampton Airport.

The five-year plan for growth includes the comprehensive transformation of Glasgow Airport’s main terminal building delivering best in class operational and retail facilities for passengers.

The programme will also direct investment into airfield infrastructure and energy efficiency initiatives helping Glasgow, which handled around eight million passengers in 2024, meet the growing demand from both customers and airline partners.

Aberdeen Airport, which is Europe’s largest heliport, will see investment in its airfield infrastructure, while Southampton’s terminal building is to be developed.

The £350m will accelerate AGS’ sustainability agenda, including its commitment to achieving net zero for its direct emissions by the mid-2030s.

The programme aligns with the core objective of the UK Government’s industrial strategy which aims to realise the full potential of the UK’s cities and regions by attracting investment. It also supports the Scottish Government’s ambition set out within its international strategy, of developing the connectivity and the quality of offering to ensure Scotland’s global competitiveness.

Mr Hammond stepped down as chief executive of Forth Ports in 2024 after holding the position for 23 years. A qualified lawyer, he joined Forth Ports in 1989 as company secretary when it was a publicly-run ports and river authority and oversaw the company’s move from a publicly listed PLC to private ownership in 2011.

Kam Jandu, chief executive of AGS Airports, said: “AGS plays a critical role in driving economic and social prosperity across Scotland and the UK. We have ambitious plans for the long-term, sustainable growth of our airports including the strengthening of our connectivity which underpins the success of the regions we serve.

“This significant investment will not only enhance the fabric of our airports, it will enhance the role they currently play in facilitating trade and tourism, and, importantly in generating meaningful employment across the country.

“We are also delighted to welcome Charles on board as our new chair. He is joining at what is a very exciting time for AGS and his unrivalled experience will prove invaluable as we work to unlock the next chapter in the group’s growth.”

Gerhard Schroeder, managing director of AviAlliance, which completed the £1.53bn acquisition of AGS Airports in January, said: “AviAlliance takes a long-term view across all the airports within our portfolio and this investment will assist AGS in accelerating its plans for delivering a superior passenger experience and growing connectivity.

“We are looking forward to working with AGS’ regional and national partners over the coming years to realise the full and undoubted potential of Aberdeen, Glasgow and Southampton airports.”

AGS supports more than 30,000 jobs and generates in excess of £2bn in Gross Value Added (GVA) for the UK economy every year and Mr Hammond said: “I know Aberdeen, Glasgow and Southampton airports very well and I am also well aware of the critical role they play as drivers of regional economic growth across the UK.

“With the £350m investment from our new shareholders now confirmed, I am relishing the opportunity of working with the AGS board, Kam and his executive team, to ensure AGS can play an even greater role in supporting our regions to boost trade and tourism.”

AviAlliance is a wholly owned subsidiary of PSP Investments, one of Canada’s largest pension investors with $264.9bn of net assets under management as of March 31, 2024.

PSP Investments is a long-standing investor in UK infrastructure, holding majority stakes in Forth Ports, one of the UK’s largest port groups, and Angel Trains, the largest rolling stock company in the UK.