City Airport sees slower passenger growth

By John Bowker

LONDON (Reuters) - City Airport is expecting a slowdown in passenger growth this year as the global financial crisis takes its toll, but still expects a 12 to 15 percent jump to around 3.4 million travellers.

"It's slower but it's not going backwards," the airport's Chief Executive Richard Gooding told Reuters in an interview, adding that 2007 growth was 23 percent.

"The froth has come off it ... but you tell me when the current financial crisis is going to end and I'll tell you when passenger numbers will really start growing again," he said, noting City expected to treble in size to 9 to 10 million passengers a year in 25 years.

City airport -- a favourite of the London investment banking community due to its proximity to financial centres in the City and docklands -- is more sensitive to corporate habits as 70 percent of its passengers are business travellers.

Gooding said it was unclear whether the consumer spending downturn would also have an impact, as many holiday-makers would have bought their tickets well in advance.

"If we see a downturn in leisure travel it will be later in the year," he said.

City Airport hosts airlines flying to short haul routes in Europe such as Geneva, Copenhagen and Edinburgh, with Air France-KLM (AIRF.PA) its biggest carrier.

But Gooding said a new British Airways (BAY.L) business class-only route to New York planned for next year could shape the future of the airport, as it could pave the way for more 'medium haul' travel to locations such as Dubai and Moscow.