TRANSPORT group Go-Ahead has expanded its interest in the aviation market with a deal that will see it take control of ground handling at 14 airports throughout the UK and Ireland.

The Newcastle-based company has agreed terms for the acquisition of Midland Airport Services (Holdings) Ltd and the ground handling activities of British Midland Airways Ltd.

The deal, worth £72m will see it acquire services at airports including Heathrow, Gatwick, Manchester and Teesside, and will more than double the group's ground handling operations.

When completed in March, the two British Midland subsidiaries will be combined with Go-Ahead's existing ground-handling business GHI to create the second largest operation of its kind behind Servisair.

Martin Ballinger, group chief executive for Go-Ahead, said: "These acquisitions fulfill our long term plans to achieve critical mass in the growing aviation service market in the UK.

"By adding these new businesses to our GHI operation, we are confident of providing improved services to both new and existing customers.

"Our trade alliance, Aviance, allows us now to offer airlines "one-stop shopping" throughout the UK and at 34 overseas airports."

GHI will be responsible for a variety of tasks including bag and cargo handling, the movement of passengers and services for aircraft.

British Midland has agreed to use the new operation for at least the next five years. The acquisitions will be funded from new debt facilities of £150m provided by the Royal Bank of Scotland plc.