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City insiders are tipping a consortium led by Manchester City Council to take over London Gatwick Airport. Speculation in the Square Mile is rife that if Manchester Airport Group (MAG) can put together a credible bid, it can beat international firms to buy the airport from BAA's Spanish owner, Ferrovial. Gatwick set to be sold after the Competition Commission ruled last month that BAA had an unfair stranglehold on the industry. The MAG group, which is owned by 11 local authorities, already owns Bournemouth and Humberside airports, but would have to find a financial partner to meet the £3bn price tag. Manchester has been praised for having less delays than the main London airports. Geoff Muirhead, chief executive of MAG confirmed it was exploring the possibility. He said: ‘The group is interested in acquiring assets that will add value for our shareholders. We have a strong track record when it comes to running airports – we have a lot of skilled people who have developed good relationships with airlines and partners. Regulatory expert, David Starkie, said: ‘I do hold MAG in high regard these days. It is much more efficient, and that has to do with intense competition from Liverpool.' One option being floated is that Manchester could put together a joint deal with a group of Scottish councils. The regulator also suggested Edinburgh's Airport could also be sold for around £700m. The Scottish Government has already signalled it would support a bid to return the airports to UK control. The LGA has also thrown its weight behind the takeover. A spokesman said: ‘BAA was bought by a Spanish firm and its performance has not been in line with expectations. ‘If airports are owned by the UK, it could be beneficial.'

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BUSINESS

City council tipped to bid for Gatwick

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