The Department for Transport (DfT) is considering a "special administration" regime for Britain's three regulated airports – Heathrow, Gatwick and Stansted. Such a regime, which is a feature of the power and water industries, is put in place to ensure a vital industry continues to operate even if a company fails. It has the effect, however, of preventing lenders and bondholders exerting their usual rights to appoint an administrator and sell off assets to get their money back.

The introduction of such a regime would cause another headache for BAA, which is being dismembered by the Competition Commission through the sales of Gatwick, Stansted and either Edinburgh or Glasgow airports. Rating agency Standard & Poor's has warned that "the introduction of a special administration regime may impair our ability to rate" and last month placed BAA on a "negative outlook".

Read the full article in The Telegraph.


The outlook is bleak for BAA, but there wouldn't be many tears shed if it were to go under.

Were all the broken promises worth it?