Exeter Airport, a significant transportation hub located in Devon, is on the verge of being sold to an investment group as part of a major deal involving the purchase of two other regional airports. The investment firm ICG (Infrastructural Capital Group) has reached an agreement with the Rigby Group, the current owner, to acquire Exeter Airport along with Bournemouth Airport and Norwich International Airport. This transaction is anticipated to be worth approximately £200 million, based on reports from Sky News, and confirms the interests of key business leaders in the South West who were briefed about the sale before the official announcement scheduled for Monday.
The discussions surrounding the sale of Exeter Airport are part of a broader trend where regional airports are increasingly sought after by investment groups, who view them as viable assets for growth and development. While both ICG and Rigby Group have opted not to comment on the deal, the implications of such a sale could significantly impact regional air travel, investment in infrastructure, and the local economy.
Exeter Airport, located in the quaint village of Clyst Honiton, has a rich history dating back to its opening in 1937. The airport has evolved over the decades, facilitating commercial flights to multiple destinations within the UK and internationally, including popular locations such as Edinburgh, Amsterdam, and Lanzarote. Notably, during World War II, the venue served as a base for military operations, which included the Polish Air Force’s 307 Squadron that played a critical defensive role during Nazi bombing raids on Exeter.
In terms of its infrastructure, Exeter Airport has seen significant upgrades over the years. A new arrivals terminal was inaugurated by Princess Anne in June 1999, and a £950,000 departure lounge was opened in the subsequent years. The airport has grown not only in size and facilities but also in passenger volume. Recently, it reported returning to profitability for the first time since the COVID-19 pandemic, marking a crucial turnaround as it earned over £1 million in profit in the fiscal year ending March 2024, a stark contrast to the operational losses faced previously.
Additionally, the airport experienced an uptick in passenger traffic, with around 435,000 travelers recorded, reflecting an 8% increase from the previous year. Moreover, the figures from the late autumn period indicated a rise in passengers, highlighting a robust recovery trajectory post-pandemic. Such metrics underscore the airport’s potential as a valuable asset in the aviation market.
In previous ownership transitions, the airport was sold in 2007 by Devon County Council to Regional and City Airports for £60 million, a specialist group overseeing investment and development. Later, in 2013, the Rigby Group acquired it for an unspecified amount. Airlines operating from Exeter include major players such as Ryanair, KLM, Aer Lingus, and TUI, demonstrating the competitive airline market served by the airport. Until its sudden liquidation in 2020, Flybe also operated flights from this airport, further emphasizing its importance in regional air travel.
In summary, the potential acquisition of Exeter Airport by ICG along with Bournemouth and Norwich airports marks a significant move in the UK regional aviation sector. With its historical context, recent profitability, and growth metrics amid a post-pandemic recovery, Exeter Airport remains a focal point for strategic investment in the aviation industry. The implications of this proposed sale could resonate through the local economy, regional travel dynamics, and future airport operations, warranting close attention as developments unfold.
