London City Airport to be acquired by US insurer AIG

London City Airport will soon change hands to a consortium led by US-based insurer AIG. The sale value has not been disclosed, with reports suggesting a sale price between £700 million (Rs6,094 crore) and £750 million (Rs6,529 crore).

Popularly referred to as the Docklands airport because of its proximity to the London Docklands, the airport, which has been in operations since 1987, was put up for sale in May this year by its Irish owner Dermot Desmond. Several consortia had evinced a keen interest in acquiring the airport.

Because of its location, the airport targets business travelers. Last year it handled around two million passengers, with strong growth in the past two years. Earlier this year, the airport had unveiled plans to increase passenger numbers 3.5 million by 2015 and had launched new routes to Europe.

London City Airport said the sale price reflected the new owners' faith in its growth potential. The deal has to obtain the approval of the EU aviation regulator.