There is plenty to stoke interest in the airports and airlines segment of the sector this month, with news emerging that Macquarie has joined the Spanish-led team seeking to buy FTSE 100 listed airports operator BAA. The Australian bank has lined up as joint financial adviser to Ferrovial’s bid consortium, alongside existing adviser Citigroup.

For its efforts, the Spanish group says it is giving Macquarie the option of buying its 20.9 per cent stake in Sydney Airport for circa £408 million, as well as its 50 per cent slug of Bristol Airport for £106 million, if the bid eventually succeeds.

The UK takeover watchdog has said the Ferrovial consortium has to make a firm offer for BAA, operator of seven UK airports including Heathrow and Gatwick, by 24 April, or slink away from the bidding.

Lower down, £48.3 million cabin management services provider Watermark is talking to private equity players and an offer for the company could even be waiting in the wings. Charismatic chief executive John Caulcutt argues private equity could help fund overseas expansion of the group’s total cabin management programme, known as ‘Encompass’, with Watermark inundated with enquiries and looking to set up operations similar to those at Heathrow.

‘I think our future lies in private equity hands and this could be a real opportunity to grow the group,’ commented Caulcutt. ‘The stock market looks for instant results, whereas we need the money and the time to restructure.’

The bid news accompanied resilient calendar 2005 figures, with adjusted pre-tax profits moving 13.3 per cent higher to £7.6 million on near nine per cent sales growth to £80.1 million. These numbers were achieved despite airlines looking to squeeze suppliers amid cutthroat competition and a surging oil price.