Glasgow is the largest airport in the AGS portfolio, handling approximately 8 million passengers in 2024.
AviAlliance plans to invest £350 million ($465 million) over the next five years to modernize AGS Airports, which includes Aberdeen, Glasgow and Southampton airports.
The company also appointed Charles Hammond, former CEO of Forth Ports, as the new chairman of AGS.
The investment marks the largest capital program since AGS was formed in 2014 and follows AviAlliance’s £1.53 billion acquisition of the airport group from Ferrovial and Macquarie in January. The funds will support terminal upgrades, airfield infrastructure improvements and energy efficiency initiatives across all three airports.
Scotland's Glasgow Airport will undergo a transformation of its main terminal, expanding floor space to accommodate more airline gates and enhance retail and dining options. Aberdeen Airport, also in Scotland, will see airfield infrastructure enhancements, while Southampton Airport's terminal will be redeveloped.
“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,” AGS CEO Kam Jandu says.
Glasgow is the largest airport in the AGS portfolio, handling approximately 8 million passengers in 2024. Aberdeen followed with 2.3 million, while England's Southampton Airport served around 850,000 passengers during the year.
AviAlliance, a subsidiary of Canada’s PSP Investments, entered the UK airport sector for the first time with the AGS deal, part of a strategic pivot following its exit from Budapest Airport and amid ongoing challenges in Germany’s aviation market. The company maintains holdings in Düsseldorf and Hamburg airports in Germany, as well as Athens, Greece, and San Juan, Puerto Rico.
Soon after finalizing the acquisition, AviAlliance sold a 22% stake in AGS to U.S.-based Blackstone for £235 million, retaining a 78% majority share and full operational control. The deal provides AGS with a new financial partner while keeping AviAlliance as the lead on strategy and operations.
Despite the investment, AGS’ three airports face headwinds. Glasgow has struggled to keep pace with Scottish capital Edinburgh, now Scotland’s main international gateway. Aberdeen, long reliant on oil and gas traffic, is adjusting to a shifting energy landscape. Southampton, meanwhile, faces competition from nearby Bournemouth and Bristol airports.
However, AviAlliance stressed the long-term potential. “AviAlliance takes a long-term view across all the airports within our portfolio, and this investment will assist AGS in accelerating its plans for delivering a superior passenger experience and growing connectivity,” AviAlliance Managing Director Gerhard Schroeder says.
“We are looking forward to working with AGS’ regional and national partners over the coming years to realize the full and undoubted potential of Aberdeen, Glasgow and Southampton airports.”
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