Saudi Arabia’s Public Investment Fund (PIF) and French investment firm Ardian have completed the acquisition of a 37.6% stake in Heathrow Airport Holdings for $4.1bn. PIF and Ardian purchased a 19.7% stake in Heathrow from Spanish construction company Ferrovial and another 17.9% from FGP Topco Ltd, the parent company of Heathrow. PIF now owns 15%, with Ardian holding 22.6%.
Heathrow is Britain’s busiest airport, servicing 214 destinations across 84 countries. In 2021, 19 million passengers passed through the airport, an average of 128,178 every day. The airport remains a major international hub and continues to grow in passenger traffic and cargo operations.
This acquisition is part of the Saudi sovereign wealth fund’s broader strategy to increase its investment in the aviation sector, diversifying away from the oil industry in line with the Vision 2030 agenda. PIF’s current aviation investments include AviLease and The Helicopter Company, all aiming to enhance Saudi Arabia's presence in global aviation markets.
In May this year, the government announced $100bn investment plans for a major overhaul and expansion of its aviation sector. Part of this was the creation of a new national carrier alongside Saudi Arabian Airlines, with commercial operations planned for mid-2025. The new venture, Riyadh Air, aims to connect Riyadh with over 100 destinations globally, enhancing Saudi Arabia’s position in the travel, tourism, and aviation sectors. The new airline has placed orders for 60 Airbus A321neo aircraft and 39 Boeing 787s, signalling its strong growth potential.
Gulf Economist Staff Writer