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Assessment of the potential value of Gatwick Airport
The Competition Commission (CC) has recently orded BAA to sell three airports including Gatwick. In the context of the CC's investigation Frontier (Europe) was commissioned by easyJet, Virgin Atlantic and Tui Travel to assess the potential value of Gatwick airport. Frontier's report provides a range of values of Gatwick Airport based on a regulatory approach to the valuation. We believe that this is an appropriate methodology to apply to Gatwick, because of its status as a designated airport. The report examines the conditions under which the value of Gatwick might be higher or lower than its current regulatory asset value.
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