£350 million boost for Aberdeen, Glasgow and Southampton airports
April 24, 2025
Having acquired AGS Airports, which operates Aberdeen, Glasgow and Southampton Airports in January, AviAlliance has confirmed a £350 million investment in the sustainable growth of the three UK airports.
AviAlliance, a wholly owned subsidiary of one of Canada’s largest pension investors – PSP Investments, completed the £1.53 billion acquisition of the airport group earlier this year and on Wednesday outlined plans of what will be the single largest capital investment programme in AGS since it was formed in 2014.
Airport transformation
Plans to accelerate the decarbonisation and future growth of the three regional airports include a comprehensive transformation of Glasgow Airport’s main terminal building to accommodate anticipated passenger growth and improve operational and retail facilities, as well as upgrades to airfield infrastructure and energy efficiency initiatives.
Meanwhile, Southampton Airport, which underwent a 164-m runway extension in 2023 will now also undergo redevelopment works within its terminal. Aberdeen Airport, which is also home to Europe’s largest heliport primarily for the offshore industry transporting passengers and cargo between the Scottish hub and oil rigs in the North Sea, will also benefit from improvements to its airfield infrastructure.
Boost for trade and tourism
Underlining the critical role that AGS plays in driving economic and social prosperity across Scotland and the UK, Kam Jandu AGS Airports CEO explained the 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. Jandu, who was formerly CEO of Budapest Airport where he worked for 15 years, was named CEO of the airport group when AviAlliance completed its acquisition in January.
“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,” he said. “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.”
Jandu also welcomed Charles Hammond OBE as the new Chair of AGS. A qualified lawyer, Hammond was previously Chief Executive of Forth Ports, in which AviAlliance is also a majority stakeholder. Hammond revealed he is “relishing the opportunity of working with the AGS board, to ensure AGS can play an even greater role in supporting our regions to boost trade and tourism.”
Sustainable growth
Deputy First Minister of Scotland, Kate Forbes (pictured with Kam Jandu) reinforced that the investment will bring huge benefits to the wider economy through improved infrastructure. “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.”
All three airports achieved carbon neutrality status on the Airport Carbon Accreditation initiative for the emissions under their direct control (Scopes 1 and 2) in 2020. The aim is to achieve net zero carbon for indirect emission by the mid-2030s through the decarbonisation of cars and public transport, the deployment of sustainable aviation fuel (SAF) and aircraft fuel efficiency programmes, as well as the decarbonisation of third part owned and operated operational vehicles and the deployment of fixed electric ground power and electric tugs to replace aircraft taxiing. The group’s sustainability strategy is based on three pillars: achieving net zero by the mid-2030s; supporting and enhancing the economic and social benefits of the communities each airport serves; and supporting its staff through providing good employment conditions, respecting diversity and equal opportunities for all staff.
