AviAlliance pledges £350m to boost AGS Airports growth, sustainability and regional economic impact

Credit: AGS Airports

AviAlliance has announced a £350 million investment in AGS Airports over the next five years—marking the largest capital injection into the group since its 2014 formation. The plan aims to boost the growth and decarbonisation of Aberdeen, Glasgow and Southampton airports, which collectively support over 30,000 jobs and contribute more than £2 billion in Gross Value Added (GVA) to the UK economy annually.

Details on AviAlliance’s investment in AGS Airports 

The announcement follows AviAlliance’s acquisition of AGS in January for an enterprise value of £1.53 billion. A wholly owned subsidiary of PSP Investments—one of Canada’s largest pension investors—AviAlliance brings a long-standing commitment to UK infrastructure, with holdings in Forth Ports and Angel Trains.

Aligned with passenger growth forecasts, the £350 million programme will support upgrades across all three airports. Glasgow Airport’s main terminal will undergo a full transformation, delivering enhanced operational and retail facilities. Airfield infrastructure and energy-efficiency initiatives are also part of the upgrade to better serve future demand from passengers and airlines.

Southampton Airport, which extended its runway in 2023, will see improvements to its terminal, while Aberdeen Airport—Europe’s largest heliport—will benefit from airfield investment. A key element of the plan includes accelerating AGS’ net zero goal for direct emissions by the mid-2030s.

The investment aligns with the UK Government’s industrial strategy, which promotes regional growth through investment, and supports the Scottish Government’s aim to improve Scotland’s global competitiveness through connectivity.

AviAlliance also announced Charles Hammond OBE as the new Chair of AGS Airports. The former Forth Ports CEO stepped down in 2024 after 23 years in the role, having led its transition from a public authority to a private company.

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… 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.”

On Hammond’s appointment, he added:

“We are also delighted to welcome Charles on board as our new Chair… his unrivalled experience will prove invaluable as we work to unlock the next chapter in the group’s growth.”

Gerhard Schroeder, Managing Director of AviAlliance, said:

“AviAlliance takes a long-term view across all the airports within our portfolio… We are looking forward to working with AGS’ regional and national partners over the coming years to realise the full and undoubted potential of Aberdeen, Glasgow and Southampton airports.”

Charles Hammond OBE added:

“It is an absolute privilege to have been appointed Chair of AGS… I am 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.”

Deputy First Minister of Scotland, Kate Forbes, and UK Aviation Minister, Mike Kane MP, also welcomed the announcement, praising its alignment with sustainability and regional economic growth goals.

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