A £30m expansion scheme already underway at Luton Airport could be followed by further investment, the owner of the site signalled today.
TBI, which also owns Belfast International and Cardiff airports, said it believed the potential of Luton Airport to be significant as low-cost airlines easyJet and Ryanair continue to develop services there.
The company said it will consider extra investment to add to the £30m currently being spent on a security hall and other facilities that is expected to almost double the retail and catering space at the airport.
The development will provide capacity for up to 12m passengers and should be ready in time for the annual peak in usage next July.
Luton currently handles almost seven million passengers a year but is braced for a major increase after easyJet said it would increase capacity by 25% and Ryanair committed four new aircraft and nine new routes.
The intention to ramp up investment at Luton is being considered as TBI prepares to buy the 28% stake it does not already own in the airport.
The proposed £78m deal with Alterra, a joint venture between US engineering group Bechtel and Singapore Changi Airport, should complete early next month.
TBI also announced strong trading for the six months to September 30 as turnover increased 4% to £107.6m and pre-tax profits soared to £19.2m from £7.2m.
The performance reflected improved trading, as well as the absence of exceptional items this year.
Passenger numbers at the company’s sites, which also include Stockholm’s Skavsta airport and Orlando Sanford in the US, rose 12% to 10.8m, with growth seen in all three sectors of low-cost, charter and full service.
TBI said Belfast International showed good growth with low-cost and charter demand helping passenger numbers lift 12% to 2.5m.
The figure for Cardiff fell 4% to 1.2m, primarily as a result of a reduction in capacity and services flown by bmibaby.
Trading in the early part of the second half has also been strong with European passenger numbers up 14% to 1.4 million in October.
Low-cost airlines continued to drive the growth with Luton up 18%.
References: EGi News 16/11/04
