Dec. 3 (Bloomberg) — A Dubai-government owned company will buy cargo and ground handling operations at London’s Heathrow airport, a week after the emirate announced it would seek to restructure the debt of Dubai World.

Dnata, an airline handling operator owned by Investment Corp. of Dubai, the emirate’s main holding company, will buy cargo and ground handling operations at Heathrow and Manchester airports from Go-Ahead Group Plc for 15 million pounds ($25 million), according to a statement today. Go-Ahead’s aviation unit reported an operating loss of 4.5 million pounds in the fiscal year ended June 27.

Dubai shook global markets when it announced on Nov. 25 that it was seeking a “standstill” agreement on loans incurred by Dubai World, which has $59 billion in liabilities. Dubai World said Dec. 1 it began “constructive” talks with banks to restructure $26 billion of debt.

“I don’t believe what’s happening will have any impact on the businesses”, Dnata head Gary Chapman said in a telephone interview from Dubai. “We are a completely separate autonomous organization.”

The company has been “choosy” about acquisitions, Chapman said. “We hadn’t really seen too many opportunities.”

Dnata will provide airline handling to more than 20 airlines at Heathrow, including Emirates Airline and Etihad Airways.

Source: Bloomberg

No related posts.