BAA name to be dropped – as the company is now primarily Heathrow
From today the name BAA will be dropped. Heathrow, Glasgow, Aberdeen Southampton and Stansted Airports will operate solely under their own stand-alone brand. Colin Matthews, said that as over the past few years, BAA has sold its stakes in Gatwick, Edinburgh, Budapest and Naples airports – and now Stansted – the name BAA no longer fits as it does represent all British airports; “we are not a public authority; and practically speaking the company is no longer a group as Heathrow will account for more than 95% of the business.” BAA Ltd has changed its name to Heathrow Ltd. Glasgow, Aberdeen Southampton and Stansted Airports will operate solely under their own stand-alone brand.
End of ‘BAA’
October 15 2012 (BAA)
From today the name BAA will be dropped. Heathrow, Glasgow, Aberdeen Southampton and Stansted Airports will operate solely under their own stand-alone brand.
Heathrow Chief Executive, Colin Matthews, said:
“We are a different company today from when BAA was formed. Over the last few years we have sold our stakes in Gatwick, Edinburgh, Budapest and Naples airports and we are in the process of selling Stansted Airport. The BAA name no longer fits. We do not represent all British airports; we are not a public authority; and practically speaking the company is no longer a group as Heathrow will account for more than 95% of the business.”
“Dropping the BAA name marks a symbolic break with the company of the past. We want Heathrow’s focus to be on its customers, to continue to improve its operational performance and to carry on investing billions of pounds in new passenger facilities. This summer, the Olympics and Paralympics showed the UK and Heathrow at their best, delivering a welcome of which the UK could be proud. Now we have to build on that welcome still further, providing a better experience to our customers every single day.”
We are now starting the process of replacing the BAA name with each individual airport brand. We will continue to publish quarterly financial results for airports financed with publicly-traded debt. Following the sale of Stansted these results will therefore focus solely on Heathrow Airport.
Notes to editors:
BAA (SP) Limited has changed its name to Heathrow (SP) Limited. BAA Funding Limited has changed its name to Heathrow Funding Limited.
Amanda McMillan, Derek Provan, and David Lees will continue as the Managing Directors of Glasgow, Aberdeen and Southampton Airports respectively.
Nick Barton continues as Managing Director of Stansted Airport. We are in the process of divesting Stansted as required by the Competition Commission.
History of BAA
Early 1960s: The Ministry of Defence controls all commercial aviation but as air travel becomes more popular running airports becomes too complex and time-consuming for central government.
1965: Labour minister Roy Jenkins introduces the Airports Authority Bill. It is intended to make the nation’s airports more flexible and able to generate revenue while remaining responsible to Parliament. The British Airports Authority is established and assumes responsibility for Heathrow, Gatwick, Stansted and Prestwick airports the following year.
1971: The British Airports Authority acquires Edinburgh, Aberdeen and Glasgow airports.
1986: The Airports Act is passed, the Authority is dissolved and all its property, rights and liabilities are passed to a new company, BAA. The following year BAA is floated on the Stock Market.
1992: Prestwick airport is sold.
2005: BAA acquires Budapest Airport.
2006: A consortium led by Ferrovial purchases BAA and BAA de-lists from the Stock Exchange.
2007: BAA sells Budapest Airport.
2009: The Competition Commission orders the sale of Gatwick, Stansted and one of either Edinburgh or Glasgow Airports. BAA appeals against the decision to sell Stansted and Edinburgh or Glasgow. The £1.51 billion sale of Gatwick Airport to an entity controlled by Global Infrastructure Partners completes in December 2009.
2010: BAA sells its stake in Naples airport for £130 million
2012: Edinburgh Airport is sold to Global Infrastructure Partners for £807 million. BAA announces the start of the sales process for Stansted Airport.
And a little bit of history…..
Airport competition probe urged
(BBC) Tuesday, 12 December 2006
The prospect of a break-up of BAA’s ownership of seven UK airports has arisen after the Office of Fair Trading called for a competition inquiry.
It said it planned to refer BAA to the Competition Commission after uncovering “poor quality and high charges”.
BAA owns Heathrow, Gatwick, Stansted andSouthamptonairports in the south-east ofEnglandandEdinburgh,GlasgowandAberdeeninScotland.
It said it had not abused its monopoly and a number of factors were to blame.
BAA was bought by Spanish infrastructure company Ferrovial earlier this year. Its seven airports handle more than 60% of all air passengers in theUK.
The OFT’s market study found that in the South East, BAA’s airports handled 90% of passenger trips, and noted that under separate ownership they could compete to attract custom.
It also said BAA’s Scottish airports, which carry more than 80% of Scottish air passengers, are not price regulated and charges to airlines are higher than Gatwick and Stansted.
The OFT is to hold an eight-week consultation period before it makes the referral to the Competition Commission.
“We believe that the current market structure does not deliver best value for air travellers in theUK, and that greater competition within the industry could bring significant benefits for passengers,” said OFT chief executive John Fingleton.
“There is evidence of poor quality and high charges – BAA’s investment plans, which are of great importance to the UK, have raised significant concerns among its customers.”
BAA’s chief executive, Stephen Nelson, said it was right that the company’s ownership was subjected to regular public scrutiny, but he rejected the suggestion that its structure was at fault.
‘Lack of capacity’
“Our belief is that BAA’s structure has benefited both passengers and airlines and BAA has not abused its monopoly,” Mr Nelson said.
“The main issue facing theUKis a lack of terminal and runway capacity in the South-East ofEngland, which results in delay and congestion.
“This problem has not arisen because of BAA’s structure, but instead is the result of theUK’s complex planning laws, an antiquated regulatory system and inflexible slot allocation.”
British Airways has called for the ownership of BAA’s airports to be broken up to encourage competition.
And Ryanair boss Michael O’Leary has been strongly critical of BAA’s plans for new investment at Stansted, which he described as a “£4bn gold-plated Taj Mahal”.
Mr Nelson accused both airlines of wanting to weaken BAA in order to achieve greater control over prices and investment at the airports, adding: “This should not be confused with acting in the passenger interest.”
No more of this: