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re: out to woo usa investors - update MAp eyeing European acquisitions

MAp eyeing European acquisitions
Saturday Oct 1 08:56 AEST

Sydney Airport operator Macquarie Airports (MAp) wants to buy more airports in Europe, saying that will remain its focus for acquisitions in the short-term.

The trust, which has stakes in airports around the world, was continuing to evaluate acquisition opportunities, its chief executive officer Kerrie Mather said.

Ms Mather said MAp was looking to expand and capitalise on the increasing trend to privatisation of airports, particularly in Europe.

"Our focus remains on Europe for the short term, where there's privatisation opportunities particularly in France, Germany and Eastern Europe," Ms Mather told the Merrill Lynch Australia investment conference in New York.

"We will continue to be very selective about the airports we acquire."

MAp has been short-listed in the bidding process for Budapest Airport, Hungary's biggest airport.

The Hungarian government is selling 75 per cent of the airport for a minimum of $1.9 billion in the first airport privatisation in Eastern Europe.

Ms Mather, meanwhile, said the airports operator had yet to see a sustained softening in demand due to the increase in oil prices.

She said the high oil prices inevitably increased the cost base of airlines and ticket prices for passengers.

"We haven't yet ascertained a sustained softening of demand.

"Certainly at our European airports in particular, in general traffic growth is still being driven by the low-cost airlines as they continue to exert downward pressure on air fares."

Qantas chief executive Geoff Dixon told the same investment conference that Australia's largest airline had not seen any dampening of demand following the latest increase in the fuel surcharge on air fares.

©AAP 2005