One of Britain's biggest airports has been sold.

After the Competition Commission ruled in March that the company would have to sell the airport within two years, BAA said today it has agreed the sale of Gatwick Airport in a deal worth £1.51bn.

The airport will be sold to Global Infrastructure Partners, the owner of City Airport, BAA said.

The Commission also ordered BAA - which is owned by Spain's Ferrovialto - to sell Stansted and either Glasgow or Edinburgh after it found competition problems at each of its seven UK airports.

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BAA is taking part in an appeal at the Competition Appeal Tribunal against the decision, which forces them to sell off some of their other airports.

The company said proceeds from the sale will be used primarily to repay part of BAA's debt, which stood at £9.6bn at the end of June.

BAA Chief Executive Colin Matthews described the deal as a "new beginning" for the company.

"BAA is changing and today's announcement marks a new beginning for both Gatwick and BAA," Mr Matthews said.

"We wish Gatwick well for the future and are confident that the airport will flourish under new ownership."

The sale is subject to EU merger regulation clearance and is due to be completed in December.

(BMcC/KMcA)