AAP Alpha Airports

RNS No 6646h
ALPHA AIRPORTS GROUP PLC
11 June 1999

                                       
         Acquisition of In-Flight Catering Facility at London Gatwick
                                       
ALPHA Airports Group Plc  ("ALPHA") today announces that its wholly owned
subsidiary, ALPHA Catering Services Limited, has acquired British Airways' in-
flight catering facility at Woolborough Lane, Gatwick, currently contract
managed by ALPHA Catering Services on behalf of British Airways.

The purchase of the Woolborough Lane facility, for a cash consideration of
#14m,  includes the leasehold building, fixed assets plus related plant and
machinery.  The value of the net assets being acquired is approximately #3m.
The transaction will be funded through existing banking facilities.

As part of the purchase agreement, ALPHA Catering Services and British Airways
have entered into a new 10 year service agreement for the continued supply of
in-flight catering and ancillary services at Gatwick and eight UK regional
airports.  This agreement consolidates ALPHA's current position as provider of
in-flight catering services to British Airways at locations throughout the UK
and is estimated to produce turnover of around #60m in its first full year.
The facility was previously run on a management contract basis and as such
comparable historical profit figures are not appropriate.

The acquisition of the catering facility in combination with the service
agreement guarantees substantial benefits to both parties. Efficiencies
generated throughout the contract term will allow profit growth for ALPHA
Catering Services and purchasing, productivity and customer service
improvements for British Airways.

ALPHA Catering Services currently provides in excess of 12 million meals per
annum to British Airways through its UK network, serving some 95,000 aircraft
departures.

This investment helps to underpin the future expansion of  ALPHA and marks an
important business acquisition for ALPHA Catering Services.

Commenting on the transaction today, Kevin Abbott, Chief Executive of ALPHA,
said the following:

     "The acquisition of the Gatwick facility and associated long-term British
     Airways service contract represents a major development for ALPHA with a
     key industry-leader.   It is a further step forward in ALPHA's strategy
     of maintaining and strengthening its position as the high performance
     leader in aviation support services.  We are excited about the
     opportunities that this move creates for all of us. "

Enquiries:

ALPHA Airports Group                                             0181 580 3200
Kevin Abbott/Stuart Siddall

Gavin Anderson & Company                                         0171 457 2345
Laura Hickman


END

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