Nieuport Aviation, a consortium of Canadian and international equity investors, has completed the acquisition of the passenger terminal at Billy Bishop Toronto City Airport from Porter Aviation Holdings.
Robert Deluce, president and CEO of Porter Aviation Holdings, said, “Nieuport Aviation is a seasoned airport operator that will deliver exceptional service at the terminal and help build on the existing overall superior travel experience for passengers. We will work closely with its management team over the next few months to ensure a seamless transition.”
Nieuport Aviation comprises InstarAGF Asset Management, Kilmer Van Nostrand, Partners Group, and institutional investors advised by JP Morgan Asset Management. Each group has varying degrees of experience within the aviation industry including JP Morgan Asset Management with a 50% interest in North Queensland Airports in Australia. Partners Group previously invested in airport operator Swissport, and Juzar Pirbhai, interim chief operating officer for Nieuport, worked as the portfolio manager for the Ontario Teachers’ Pension Plan Board, which has an investment in Birmingham Airport in the UK.
Gregory Smith, president and CEO of InstarAGF, said, “The terminal is a premier transportation infrastructure asset with an established operating history, robust contractual framework and positive long-term outlook. Studies show that travelers overwhelmingly choose Billy Bishop Airport because of its convenience, efficiency and high service standards. With a focus on sustaining and elevating the passenger experience at the terminal, we look forward to building strong relationships with all stakeholders at the airport and to supporting its further development as a vital gateway for commerce and economic growth in the greater Toronto region.”
Billy Bishop Airport is the ninth busiest airport in Canada, serving 2.4 million passengers in 2014. The terminal is a state-of-the-art facility constructed in 2010 by a subsidiary of Porter Aviation called City Centre Terminal Corp (CCTC). The airport is an important economic asset for the Greater Toronto Area, generating approximately CA$1.9bn (US$1.5bn) annually and supporting approximately 5,700 direct and indirect jobs.
“The airport has had exponential passenger growth since 2006, reflecting high and sustainable demand for a downtown airport,” said Sarah Borg-Olivier, senior vice president – communications for Nieuport. “We view the terminal as a premier infrastructure asset with a number of attractive attributes, including strong credit quality, stable and predictable cash flow that is linked to inflation, and the potential for long-term capital appreciation.
“As the new owner, we intend to run this world-class facility in an efficient manner and where the passenger experience and safety are paramount.”