AviAlliance has unveiled plans to invest £350 million in the growth and decarbonisation of AGS Airports over the next five years following its recent acquisition of the group which comprises Aberdeen, Glasgow and Southampton airports.
AviAlliance, one of the world’s leading private airport operators, completed the acquisition of AGS in January for an enterprise value of £1.53 billion.
As part of the “single largest capital investment programme” in AGS since it was formed in 2014, Glasgow’s main terminal building will undergo a “comprehensive transformation”, while Southampton’s terminal will also have work carried out and Aberdeen will undergo changes to its airfield infrastructure.
AGS chief executive Kam Jandu said: “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.”
The group said it currently supports more than 30,000 jobs and generates more than £2 billion in gross value added (GVA) for the UK economy every year.
The investment, which is described as being aligned with anticipated passenger growth figures, is intended to speed up AGS’ sustainability plans, including the goal of achieving net-zero direct emissions by the mid-2030s.
The work at Glasgow’s main terminal building, which is aimed at boosting operational and retail facilities for passengers, will take place alongside investment in airfield infrastructure and energy efficiency initiatives.
AviAlliance managing director Gerhard Schroeder said: “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.”
AviAlliance, a wholly owned subsidiary of PSP Investments, one of Canada’s largest pension investors, also confirmed the appointment of Charles Hammond as the new chair of AGS.
Hammond, a qualified lawyer, stepped down as chief executive of Forth Ports in 2024 after holding the position for 23 years.
He said: “I know Aberdeen, Glasgow and Southampton airports very well and I am also well aware of the critical role they play as drivers of regional economic growth across the UK.
“With the £350 million investment from our new shareholders now confirmed, I am relishing the opportunity of working with the AGS board, Kam and his executive team to ensure AGS can play an even greater role in supporting our regions to boost trade and tourism.”
Scotland’s deputy first minister Kate Forbes said: “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.”
UK aviation minister Mike Kane MP described the investment as “fantastic”, adding that it would have the effect of “turbocharging economic growth and supporting local jobs”.
He also said it would drive forward decarbonisation plans and support the deployment of new fuels and technology.
