AviAlliance Pledges £350M to Modernize AGS Airports

AviAlliance has announced a £350 million investment over the next five years to upgrade AGS Airports’ facilities at Aberdeen, Glasgow and Southampton. The announcement follows AviAlliance’s £1.53 billion acquisition of the airport group from Ferrovial and Macquarie in January, and marks the largest capital program since AGS was established in 2014. AviAlliance has also appointed Charles Hammond, former CEO of Forth Ports, as chairman of AGS, underscoring its commitment to operational excellence and strategic leadership.

The funding will be allocated across terminal expansions, airfield infrastructure improvements and energy efficiency initiatives at all three airports. Glasgow Airport, the largest in the portfolio with approximately 8 million passengers in 2024, will see a major transformation of its main terminal. The redesign will expand floor space to accommodate additional airline gates, extensive new retail areas and enhanced dining outlets, improving passenger flow and boosting non-aeronautical revenue.

Aberdeen Airport, which handled 2.3 million passengers last year, will benefit from upgraded runway surfaces, enhanced taxiways and improved lighting systems to support safe, year-round operations in challenging weather conditions. The investment aims to strengthen the airport’s role as a vital gateway for the North Sea energy sector and to diversify its traffic base by attracting new leisure and regional routes.

At Southampton Airport, which served around 850,000 travelers in 2024, AviAlliance plans a comprehensive terminal redevelopment. The project will modernize passenger lounges, increase check-in capacity and introduce seamless security screening lanes. These upgrades are designed to create a more customer-focused experience while laying the groundwork for future route growth and airline partnerships.

“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,” said AGS CEO Kam Jandu. He highlighted the importance of aligning infrastructure upgrades with regional economic objectives, including job creation and improved connectivity for remote communities.

AviAlliance, a subsidiary of Canada’s PSP Investments, entered the UK market with the AGS transaction, complementing its existing holdings in Düsseldorf and Hamburg airports in Germany, as well as Athens and San Juan. Shortly after the acquisition closed, AviAlliance sold a 22 percent stake in AGS to U.S.-based Blackstone for £235 million, retaining a 78 percent majority share and operational control while bringing in a new financial partner to support the upgrade program.

Despite the ambitious capital plan, AGS Airports faces competitive and market challenges. Glasgow Airport continues to compete with Edinburgh as Scotland’s primary international hub, while Aberdeen adapts to fluctuating oil and gas traffic. Southampton must contend with growing rivalry from nearby Bournemouth and Bristol airports. AviAlliance stressed that these investments are intended to position AGS for long-term growth by enhancing passenger experience and expanding route networks.

“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,” said Gerhard Schroeder, managing director at AviAlliance. He emphasized the importance of collaborating with regional and national stakeholders to unlock the full potential of each airport.

With Charles Hammond’s appointment bringing deep expertise in port and transport management, AviAlliance is poised to guide AGS through this major modernization phase. By aligning upgrades with sustainable practices and community needs, the company aims to ensure that Aberdeen, Glasgow and Southampton airports remain competitive, resilient and capable of meeting future travel demands.

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