Exeter Airport is poised for a significant ownership change as investment firm Intermediate Capital Group (ICG) agrees to acquire the Devon-based regional airport alongside Bournemouth and Norwich airports from the current owner, Rigby Group. The multimillion-pound deal, reportedly valued at around £200 million, is expected to be formally announced shortly, marking a major transaction in the UK’s regional aviation sector.
Multimillion-Pound Sale of Three English Regional Airports
ICG’s proposed acquisition includes Exeter Airport, situated near the village of Clyst Honiton in Devon, as part of a package deal with two other regional airports in Bournemouth and Norwich. Sky News initially reported the transaction’s approximate value, with sources within the South West’s business community confirming that local leaders have been briefed ahead of a public statement anticipated on Monday.
Representatives from both ICG and Rigby Group declined to comment when approached by the BBC, reflecting a standard media blackout in the lead-up to formal announcements in large-scale deals.
Exeter Airport: History and Current Operations
Established in 1937, Exeter Airport has evolved from its early military use during World War II into a vital regional transport hub. Notably, during the 1942 Nazi bombing raids on Exeter, the Polish Air Force’s 307 Squadron operated fighter planes from the airfield, playing a pivotal role in defending the city from aerial attacks.
Today, Exeter Airport serves a variety of domestic and international destinations, including flights to Edinburgh, Amsterdam, and Lanzarote. The airport supports commercial operations for several airlines such as Ryanair, KLM, Aer Lingus, and TUI. Until its collapse in 2020, Flybe used Exeter as a base of operations.
Infrastructure improvements over the years have enhanced passenger experience. A new arrivals building was inaugurated in 1999 by the Princess Royal, followed by the opening of a £950,000 departure lounge in 2003, highlighting ongoing investment in the site’s facilities.
Ownership History and Recent Financial Performance
Exeter Airport has changed hands several times in the past two decades. In a 2007 transaction, Devon County Council sold the airport for £60 million to Regional and City Airports, a Balfour Beatty-led investment group. In 2013, Rigby Group acquired the airport, though the terms were not disclosed publicly.
The airport’s financial health has fluctuated, particularly due to the impact of the Covid-19 pandemic, which severely disrupted global travel. However, in August 2024, airport officials reported a return to profitability for the first time in several years, with a profit of just over £1 million recorded for the 12 months ending in March 2024. This marked a significant £2 million turnaround compared to the previous year.
Passenger traffic has demonstrated recovery and growth, with airport spokespersons noting an 8% increase in passenger numbers over the past year—rising from 402,000 to 435,000. Activity in the current 2024 calendar year also reflects positive momentum, with 337,993 passengers recorded between April and October—a rise of over 15,000 compared with the same period in 2023.
Broader Implications for Regional Aviation
The sale of Exeter Airport, along with Bournemouth and Norwich, to ICG underscores shifting dynamics in the ownership and management of regional airports across England. Investment firms are increasingly targeting smaller airports as travel demand rebounds and investors seek to capitalize on the sector’s medium-term growth potential.
Dr. Amanda Russell, an aviation analyst with the UK Aviation Consultancy Group, commented: “Regional airports play a critical role in connecting communities and supporting local economies beyond London and other major hubs. This transaction suggests confidence in the regional recovery narrative despite economic uncertainties.”
She added that new ownership could bring both capital infusion and strategic initiatives aimed at boosting connectivity and passenger experience in these key transport nodes.
Stakeholder Perspectives and Regional Economic Impact
Exeter Airport’s role in Devon’s economy remains significant, providing jobs and facilitating tourism and business travel. Local council representatives have historically supported the airport for its contribution to regional growth.
Jonathan Mills, Chair of the Devon Business Council, told the BBC: “We welcome any investment that strengthens Exeter Airport’s position. It’s more than a transport facility; it’s a gateway for commerce and tourism in the South West. Ensuring its viability and growth is essential to the region’s economic future.”
Airline operators that use Exeter have also shown cautious optimism about the ownership transition. While details of future operational strategies are currently unclear, an optimized management structure could improve route offerings and service quality.
Looking Ahead: Future Outlook and Challenges
The coming months will be pivotal as ICG completes the acquisition and sets out its vision for Exeter and the other airports. Key considerations will include potential infrastructure upgrades, route expansion opportunities, and environmental sustainability commitments in line with increasing regulatory and public pressure on the aviation industry to reduce carbon emissions.
According to the UK Civil Aviation Authority, regional airports contribute substantially to domestic connectivity but face challenges including competition from larger hubs and the need for sustainable growth models.
The new ownership’s capacity to navigate these challenges while leveraging Exeter Airport’s historic strengths will be closely monitored by stakeholders across the aviation sector.
Conclusion
The impending sale of Exeter Airport within a £200 million deal represents a significant development for regional aviation in England. As the airport seeks to build on its post-pandemic recovery, investment and strategic management will be critical in shaping its future role as a regional transport hub.
With an iconic legacy dating back to World War II and a solid recent financial turnaround, Exeter Airport stands at a crossroads poised for transformation under new stewardship as it continues to connect Devon with the wider UK and world.
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