AVIALLIANCE, The new owner of Glasgow Airport has revealed plans for a “comprehensive transformation” of the main terminal building to deliver ‘best in class’ operational and retail facilities as part of a £350 million investment in the growth and decarbonisation of its three UK airports. AviAlliance is a wholly owned subsidiary of PSP Investments which is a long-standing investor in UK infrastructure.
The German-headquartered firm purchased the airport, alongside Aberdeen and Southampton airports, in November 2024 in a deal worth £1.53 billion.
The transformation of Glasgow Airport’s main terminal building will also come alongside upgrades to its airfield infrastructure and energy efficiency initiatives, with AviAlliance saying the work will ‘significantly’ enhance the passenger experience, whilst also equipping the airport for future growth and growing passenger numbers.
The plans form part of a £350 million investment into the airports, with Aberdeen set to also see upgrades to its airfield infrastructure, whilst Southampton’s main terminal will be redeveloped.
AviAlliance, which completed its acquisition of Glasgow, Aberdeen and Southampton airports owner AGS in late January for an enterprise value of £1.53 billion, declared its plans constituted the “single largest capital investment programme in AGS since it was formed in 2014”.
AviAlliance added that the programme aligns with the core objective of the UK Government’s industrial strategy which aims to realise the full potential of the UK’s cities and regions by attracting investment.
In addition, it also supports the Scottish Government’s ambition set out within its international strategy, of developing the connectivity and the quality of offering to ensure Scotland’s global competitiveness.
Alongside investment plans, AviAlliance confirmed the appointment of Charles Hammond OBE as the new chair of AGS. He stepped down as chief executive of Forth Ports in 2024 after holding the position for 23 years.
Kam Jandu, chief executive of AGS Airports, said:
“AGS plays a critical role in driving economic and social prosperity across Scotland and the UK. We have ambitious plans for the long-term, sustainable growth of our airports including the strengthening of our connectivity which underpins the success of the regions we serve. 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.
“We are also delighted to welcome Charles on board as our new chair. He is joining at what is a very exciting time for AGS and his unrivalled experience will prove invaluable as we work to unlock the next chapter in the group’s growth.”
Charles Hammond OBE added :
“It is an absolute privilege to have been appointed chair of AGS. I know Aberdeen, Glasgow and Southampton airports very well and I am also well aware of the critical role they play as drivers of regional economic growth across the UK."
"With the £350 million investment from our new shareholders now confirmed, I am relishing the opportunity of working with the AGS board, Kam and his executive team, to ensure AGS can play an even greater role in supporting our regions to boost trade and tourism.”
Deputy first minister of Scotland Kate Forbes said:
“This significant investment in Scotland by AGS will bring incredible benefits through improved infrastructure at both Glasgow and Aberdeen airports, and to our wider economy. Good international connectivity is key to economic growth in Scotland. It enables flow of trade, investment, labour and tourism, which will contribute to our prosperity. Additionally, the commitment to sustainability is welcome as we progress towards a net zero future.”
UK Aviation Minister, Mike Kane MP, said:
“It’s fantastic to see AGS Airports investing hundreds of millions of pounds into regional airports, turbocharging economic growth and supporting local jobs and skills right across the country, in line with our Plan for Change.
“This investment will drive forward decarbonisation at airports across the country and support the deployment of new fuels and technologies to contribute to the sustainable growth of the sector.”
As per the announcement, Aligned to the anticipated passenger growth expectations, the £350 million investment will help facilitate the accelerated growth of AGS which supports more than 30,000 jobs and generates in excess of £2 billion in Gross Value Added (GVA) for the UK economy every year.
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