Wiggins Group in discussion, according to reports, to develop Czech airports

Published: 11/16/1999

Wiggins Group, the UK property developer, is in discussion with British Aerospace/Saab to develop two major airports in the Czech Republic, as part of its diversification into airport operations. The company said that the airports, reported to be Ostrava, Mosnov and Plzen, will incorporate business and industrial parks and should help further stimulate investment opportunities in the Czech Republic. Subject to the deal being finalised, the investment will start in July 2000 and the airports are expected to come on stream in 2002, forming part of Wiggins Group's European PlaneStation network. Wiggins intends to build a network of airports within the next few years. Adding to the recently purchased Manston airport, outside London in Kent, the company expects to land a long lease for Smyrna airport, outside Nashville, USA. It is also looking at several other opportunities in North America and Europe. However, British Aerospace's level of commitment to the project appears to hinge on its bid to secure major Czech defence contracts. Michal Cervinka, General Manager of the Ostrava Airport said that, although the parties had visited the airport some three months ago, nothing has yet been agreed. He added that Wiggins intended to use the airport as a regional cargo hub and distribution centre, and possibly build an aircraft repair facility there. British Aerospace confirmed it would be interested in supporting Wiggins in putting the project together, but added that it was “exploring a number of developments". Vlasta Pallova, spokeswoman for the Airports" Administration expressed skepticism over Wiggins' interest in Ostrava and Mosnov Airports. "Various companies have been interested, and usually they have a look and that's it. No cooperation has come out of such an excursion yet," Pallova said. She added that any development of Mosnov would first have to be approved by the Airports Administration's management, and so far no one from Wiggins or British Aerospace had approached them. Cervinka said he hoped that Wiggins would present a concrete proposal for Mosnov near the Polish border, as the Ostrava airport has long sought investors' interest. "We are able to lease them land as a greenfield investment. They know that they can build here cheaper than anywhere else and that the airport is classified to take any type of aircraft," said Cervinka. While the airport has been in touch with "a number of investors," nothing has materialized. Wiggins' plans are at a similar stage at the Plzen airport, which is currently used by an air rescue service and owned by the Ministry of Defence. Wiggins' are reportedly talking to a company called Orchard, which manages Plzen airport, about operating the aircraft repair facility in Ostrava. He claimed that Wiggins wanted to develop the PlaneStation system into a 100-airport network within the next five years, providing an alternative for cargo and passenger airlines to increasingly overcrowded and expensive airports in more major cities. When contacted Wiggin were reluctant to discuss their plans for Eastern Europe.

Article ID: 1089