Airlines fearful over London City Airport sale

CityJet has warned that all airlines flying to and from London City Airport are concerned over its sale to a Canadian consortium for £2bn (€2.58bn) and the potential cost increases the deal could bring.

The sale of London’s smallest airport, which is particularly popular with business travellers due to its proximity to Canary Wharf and the city’s financial district, was announced last week with a consortium led by the Ontario Teachers’ pension fund and Austrian company Borealis beating other competitors to the deal.

The £2bn price tag has drawn considerable criticism from the airline industry, however, with IAG’s Willie Walsh calling it foolish and warning he was prepared to pull most of British Airways’ fleet while the CityJet executive chairman told the Irish Examiner the airport’s future would be in doubt were a sale to be completed at that price.