AviAlliance outlines investments plans for AGS Airports

AviAlliance has announced plans to invest £350 million in the future growth and decarbonisation of Aberdeen, Glasgow and Southampton airports over the course of the next five years.

The global airport operator completed the acquisition of AGS Airports, operator of the three UK gateways, in January for an enterprise value of £1.53 billion and today outlined details of what will be the single largest capital investment programme in AGS since it was formed in 2014.

Aligned to the anticipated passenger growth expectations, the £350 million investment is designed to help facilitate the accelerated growth of AGS which supports more than 30,000 jobs and generates in excess of £2 billion in Gross Value Added (GVA) for the UK economy every year.

Included within the investment will be a comprehensive transformation of Glasgow Airport’s main terminal building, with the aim of delivering “best in class operational and retail facilities for passengers”.

The programme will also direct investment into airfield infrastructure and energy efficiency initiatives.

According to AviAlliance, not only will this significantly enhance the passenger experience, it will also ensure the airport is equipped to meet the growing and future demand from both customers and airline partners.

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.

Importantly, says AviAlliance, the £350 million will accelerate AGS’ sustainability agenda including its commitment to achieving net zero for its direct emissions by the mid-2030

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.”

Gerhard Schroeder, the long serving managing director of AviAlliance, enthused: “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.”

Commenting on the planned investment in Aberdeen and Glasgow airports, 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.”