Airport operator BAA, which owns seven UK airports, has announced it is set to sell Gatwick Airport for £1.51bn after it secured a deal with investment firm Global Infrastructure Partners (GIP).

The proceeds from the sale, of which £55m will be dependent on future traffic performance, will be mainly used by the Spanish-owned company to pay part of its existing £9.6bn debt. GIP, which also owns a 75 per cent stake in London City Airport, is expected to complete the acquisition of Gatwick Airport in December, subject to European Union merger regulation clearance.

Colin Matthews, BAA chief executive said: "Gatwick and its people have long been a central part of BAA and we are proud of the airport's development as one of the world's leading international airports. "BAA is changing and today's announcement marks a new beginning for both Gatwick and BAA. We wish Gatwick well for the future and are confident that the airport will flourish under new ownership."

Gatwick Airport was originally put on the market in September 2008 before the Competition Commission (CC) had completed an investigation into UK airport market competition. However, the decision to sell the airport has coincided with the start of BAA's challenge against the CC ruling that ordered the operator to sell both Gatwick and Stansted, along with either Edinburgh and Glasgow, in the interests of passengers and airlines.