AIG's Shareholding in LCA "On The Block" ?

The Financial Times continues to cover the story of the majority shareholder of London City Airport, AIG, the "stricken US insurer" which looks set to turn a few things upside down at LCA:

http://www.ft.com/cms/s/0/6a0a9468-8d9a-11dd-83d5-0000779fd18c.html?ncli&nclick_check=1

"AIG’s 59 per cent stake in Transatlantic Holdings, a listed reinsurer, is also believed to be on the block, as are its huge property portfolio and private equity investments including one in London’s City Airport".

No need to make predictions on this one.

City Airport and AIG: Uncertain Times

After a tip off from an anonymous source some months alleging that redundancies were already occuring at London City Airport, it appears the current staff base continues to be anxious about who they will be working for in the future. We asked Rupa Haria, PR assistant at London City Airport to confirm or deny the alledged redundancies over 2 months ago - but to date we have had no response. Cllr Christine Bowden, Deputy Mayor of Newham was also asked by residents in Newham to look into the issue of redundancies at London City Airport - but once again no response has been received to date.

In an article in the Telegraph entitled "London City airport jobs in the air as AIG battles for survival" written before the US federal reserve came to the rescue of the ailing AIG, a major shareholder in LCA it raised possible consequences for London City Airport.

What is of greatest concern is that City Airport consistently use jobs for the carrot and stick approach with Newham Council and other government contacts - this is despite their utter failings in providing the type of job growth that was promised over 7 years ago. If redundancies have occurred already - isn't the stick and carrot of job creation just yet another smokescreen of disingenous claims being made by London City Airport? Shouldn't they be concentrating instead on retaining the staff they have and avoiding the alleged redundancies that have already taken place? Perhaps that is a utopian thought when in reality the business only cares for profit making for it's shareholders.

And here's more food for thought: such moves as installing self 'check in' stations don't increase jobs or the need for additional staff - they reduce the need for staff. Yet more hypocrisy.

London City Airports Annual Bill To London Taxpayers

We raised the issue a time ago, (something that London City Airport neglect to address in their spin to residents), of the £7million annual cost for LCA airport security, that you the London taxpayer, pay to save their shareholders money and make them more profit.

An agreement was supposed to have been settled by November of 2007 with regard to these costs: the Metropolitan Police quite rightly should not be picking up the cost and paying with our taxes - most of us would prefer to see that £7million put to good use by the Police in helping them to do their job in communities - not in commercial financial concerns. And it's clear that the Met want to see LCA pay their own bill - and we are right behind them on that.

So what's happened since with these discussions? Well not much it seems - LCA are dragging their heels - putting up a good fight so that their shareholders don't pay a penny towards the security costs.

In an article in Airport International at the end of last summer they highlighted how it is London taxpayers who are paying for London City Airport security and Richard Barnes of the MPA stated:

“There appears to be no common approach to the extent to which operators contribute to policing costs and too many different interpretations of requirements under current legislation. Police have to provide a service to protect all those who use our airports, and it is unfair to expect them to pay for policing private, moneymaking businesses.”

He concluded:“At the end of the day, it is the taxpayer who pays, while shareholders earn dividends. This can be tolerated no longer.”

Apparently it will ultimately land on the desk of Ruth Kelly if it is not resolved - and we just can't wait to see what decision she makes on whether we should all continue to go to work, or receive pensions and pay taxes on them just to fund the likes of LCA, Credit Suisse, GE and AIG.

And what was London City Airport saying about what they give to the community?!! We'll hazard a guess that it's not anywhere near £7million's worth each year!!