by Trevor Sturgess

Gatwick Airport is to be sold for £1.51 billion.

The British Airports Authority, which was ordered by the Competition Commission to sell three of its airports, has agreed the deal with Global Infrastructure Partners, the majority owner of London City Airport.

BAA said that £55 million was conditional on future traffic performance and the buyer’s future capital structure. Proceeds will be used to primarily repay part of BAA’s existing debt.

BAA chief executive Colin Matthews said: “Gatwick and its people have long been a central part of BAA and we are proud of the airport’s development as one of the world’s leading international airports.

“BAA is changing and today’s announcement marks a new beginning for both Gatwick and BAA. We wish Gatwick well for the future and are confident that the airport will flourish under new ownership. BAA will focus on improving Heathrow and our other airports.”

If the sale is cleared by various bodies, including the EU, the sale should be completed by December.

BAA, which is owned by Spanish firm Ferrovial, was forced to sell Gatwick and two other airports because of the lack of competition in the market, especially in the south east.

The new owners may revive the issue of a new runway which could open from 2019.

Gatwick opened in 1958 and is the busiest single runway airport in the world, handling 32.2 million passengers in the year to September 2009. It employs around 2,500 people.