FirstGroup, the transport operator, yesterday abandoned a three-year flirtation with the airports business when it sold its majority stake in Bristol International Airport for £137m and bought Canada's third largest school bus company for £11m from Hertz Group, writes David Gow.

The group, which bought a 51% stake in the Bristol airport from the city council in December 1997 for £41m, has decided that the cost of building an airports division to complement its buses and trains businesses is too high - despite a 30% growth in passenger numbers at the profitable west of England airport.

It and the council have sold the airport to a joint venture company owned by Australian investment bank Macquarie and Spanish transport infrastructure concern, Cintra, part of Grupo Ferrovial.

FirstGroup will book a paper profit of £60m on the deal, being paid £101m for its stake.

• Business