London City Airport has been acquired by a consortium comprising American International Group and Global Infrastructure Partners for about £750m. The deal follows a three month contest between AIG and two other bidders, including a joint venture by Merrill Lynch and Balfour Beatty. Irish businessman Dermot Desmond, who bought London City in 1995 for £23.5m, will walk away with sale proceeds of around £650m. London City has become popular for private and corporate jets due to its proximity to the City, aided by a Docklands Light Railway extension in 2005. Passenger numbers reached 2m in 2005, and the airport projects this figure will reach 8m by 2030. The sale was handled by Morgan Stanley.