Manchester Airports Group - History

History

Manchester Airports Group was formed in 2001 to own and operate Manchester Airport and the other smaller acquisitions. Humberside Airport was acquired in 1999 and in 2001 MAG acquired East Midlands Airport for £241m. Consequently, the councils of Greater Manchester saw it fit to create a holding company to manage this portfolio.

Prior to that the Manchester Airport Board operated Manchester Airport from 1986, when the Greater Manchester County Council was disbanded. Since its spin-off, MAG has branched out into other ventures. In addition to Manchester Airport, it owns and operates Bournemouth Airport and East Midlands Airport. The Group handles over 29 million combined passengers a year from its four airports and generates approximately £3.2 billion for the economy of the United Kingdom, whilst supporting, directly and indirectly, over 130,000 jobs.

Manchester Airports Group runs airport service-related businesses including baggage handling and ground services, car parking, fire-fighting, airport security, engineering, motor transport services and advertising. The property and development arm of MAG, previously known as MADL (Manchester Airport Developments), was rebranded as MAG Developments in early 2009.

The Group reported 2007/08 profits of £96.5m and decided in 2008 to sell Humberside Airport after 9 years of ownership. However this decision was reversed later in the year following a surge in passenger numbers and little interest from potential bidders. However, MAG sold its 83.7% share of Humberside in 2012 for £2.3 million to Eastern Group who operate nearly half of all flights there amid a return to a general decline of passenger numbers for the airport and desire to focus on larger airports.

MAG in partnership with a Canadian pension fund and financial assets unsuccessfully bid for London Gatwick Airport, this followed a report by the Competition Commission into BAA's market dominance in London/South East England and Scotland forcing it to sell off some of its airports. MAG made a £1.4 billion offer to acquire Gatwick Airport in 2009. Originally BAA wanted £2 billion for the airport, but eventually came down to an asking price of £1.5 billion. However, MAG refused to arrange a further £100 million of finance and consequently pulled out of the race.