Major plans revealed for Glasgow Airport after takeover
AviAlliance has announced plans to invest a whopping £350million in the 'future growth and decarbonisation' of AGS Airports over the next five years.
It follows the company's takeover of the group, which comprises Aberdeen, Glasgow and Southampton airports.
The firm, one of the world's leading private airport operators, completed the acquisition of AGS Airports in January in a deal worth £1.53billion.
Now, it has outlined details of what is claimed to be the 'single largest investment programme in AGS' since it was formed in 2014.
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As part of the investment, Glasgow Airport's main terminal building will undergo a 'comprehensive transformation'.
The programme will also direct investment into airfield infrastructure and energy efficiency initiatives.
AviAlliance is a wholly owned subsidiary of PSP Investments. Meanwhile, PSP Investments is a long-standing investor in UK infrastructure.
It is hoped that the huge investment in the airports will help facilitate the 'accelerated growth of AGS'.
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On top of Glasgow Airport, Southampton Airport, which completed its 164-metre runway extension in 2023, will undergo redevelopment works within its terminal, while Aberdeen Airport, which is Europe's largest heliport, will see similar investment in its airfield infrastructure.
The £350million is also hoped to accelerate AGS' sustainability agenda, including its commitment to achieving net zero for its direct emissions by the mid-2030s.
Alongside its investment plans, AviAlliance has also confirmed the appointment of Charles Hammond OBE as the new Chair of AGS.
Charles stepped down as Chief Executive of Forth Ports in 2024 after holding the position for 23 years.
A qualified lawyer, he joined Forth Ports when it was a publicly run ports and river authority in 1989 as Company Secretary and oversaw the company's move from a publicly listed PLC to private ownership in 2011.
(Image: Supplied)
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, 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.'
Charles Hammond OBE, Chair of AGS Airports, said: 'It is an absolute privilege to have been appointed Chair of AGS.
"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 £350 million 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.'
Deputy First Minister of Scotland Kate Forbes said: 'This significant investment in Scotland by AGS will bring incredible benefits through improved infrastructure at both Glasgow and Aberdeen airports, and to our wider economy.
'Good international connectivity is key to economic growth in Scotland.
"It enables flow of trade, investment, labour and tourism, which will contribute to our prosperity.
"Additionally, the commitment to sustainability is welcome as we progress towards a net-zero future.'
UK Aviation Minister, Mike Kane MP, said: 'It's fantastic to see AGS Airports investing hundreds of millions of pounds into regional airports, turbocharging economic growth and supporting local jobs and skills right across the country, in line with our Plan for Change.
'This investment will drive forward decarbonisation at airports across the country and support the deployment of new fuels and technologies to contribute to the sustainable growth of the sector.'
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