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Dubai firm to buy Heathrow operation

LONDON (AP) — A company owned by the Dubai government is buying the loss-making cargo and ground services operations at London's Heathrow airport — just a week after the emirate's main investment group sparked a global market sell-off with news of its debt problems.

Britain's Go-Ahead Group PLC said, yesterday, it is selling most of the Heathrow and Manchester services to Dnata, a travel services provider owned by the Investment Corporation of Dubai for £15 million ($25 million). The Investment Corporation of Dubai, which owns the Emirates airline and major aluminum and infrastructure industries, is the second of two state-owned companies alongside Dubai World — the company that kicked off last week's stock market slump when it announced it was seeking to delay repaying some of its $60 billion in debt.

Analysts have suggested that the Investment Corporation of Dubai is emerging from the emirate's crisis as the holder of good assets.

Dnata already provides ground handling services at 17 airports in Dubai, Singapore, Switzerland, Philippines, Australia, Pakistan and China.