A selection of local and national press articles about BA, BAA and Ferrovial.
Heathrow owner presses on with third runway plans despite warning over flying curbs
Friday, 04 December 2009 00:00
BAA is pushing ahead with a planning application for a third runway at Heathrow despite a warning from the government-backed Carbon Trust that airport expansion might have to be curbed to meet emission reduction targets.
Britain's largest airport owner has told the transport secretary, Lord Adonis, that it expects to launch a consultation on its plans after next spring. That could coincide with a general election, when the government's backing for a third runway is expected to cost it support in the capital. The Conservatives and Liberal Democrats oppose Heathrow expansion.
However, the Carbon Trust, a government-funded agency that promotes low-carbon technologies, believes that politicians will have to consider a runway embargo and aviation taxes if the airline industry continues to grow unchecked.
The government's backing for the third runway will cost it support at the election.
And BAA will be wasting its debt-stapped owner's cash by going ahead with the planning application.
BAA to pump £500m into Heathrow refurbishment
Friday, 13 November 2009 00:00
BAA today announced plans to pump an extra £500 million into its London airports group in order to pay down debts and help to pay for refurbishments at Heathrow. The cash injection will consist of £200 million of new equity from shareholders and £300 million from BAA Airports and FGP Topco, the group's holding company.
The move follows the Government's call in October for major UK airports to bolster their finances. BAA said that the funds would be used to help to fund an overhaul at Heathrow, including the construction of a new Terminal 2.
The company is planning to spend £1 billion per year on improvements at Heathrow, London's biggest airport.
It remains to be seen whether BAA really can spend £1 billion per year on improving Heathrow, having just lost £785m in the first nine months of this year.
At least it won't be spent on any kind of expansion.
Second runway ahead as City Airport's owner buys Gatwick for £1.5bn
Wednesday, 21 October 2009 00:00
Gatwick will be sold today for £1.5 billion, in a move expected to prompt a series of developments at the airport. As part of BAA’s plan to reduce its £10 billion debt burden, the airport will be sold to Global Infrastructure Partners, an investment fund that also owns London City Airport. The fund is a joint venture between Credit Suisse, the investment bank, and GE, the world’s largest company. Most of the price will be raised from major banks including HSBC, RBS, Credit Suisse and JP Morgan.
There could now be a new era for Gatwick as it repositions itself as the airport of choice for holidaymakers in the South East. It has been seen as the poor relation to Heathrow, but Global Infrastructure Partners is understood to want to attract holidaymakers rather than businessmen as part of its strategy for the airport south of London.
The hope is that Gatwick can garner business from international airlines offering package holidays and destinations in far-flung locations while keeping low-cost carriers such as easyJet that fly to European destinations.
Breaking up BAA is a positive step, but will this really achieve the Competition Commission's objective of greater competition in the south east? GIP already owns London City Airport.
