BAA plc
Encyclopedia
BAA Ltd. is the Spanish-owned operator of six British
airport
s (including Heathrow Airport
) and Naples Airport
in Italy, making the company one of the largest transport companies in the world. BAA stems from British Airports Authority and is owned by a consortium led by Grupo Ferrovial, a Spanish firm specialising in infrastructure. The company's head office is located in The Compass Centre on the grounds of London Heathrow Airport
in the London Borough of Hillingdon
.
BAA makes money from charging landing fee
s to airline
s and increasingly from ancillary operations within those airports such as retail and property. BAA does not operate all UK airports - most are in the ownership of local authorities or other corporations.
BAA was once a constituent of the FTSE 100 Index
but is now owned by FGP TopCo Limited, an international consortium, which includes Caisse de dépôt et placement du Québec
and GIC Special Investments
, that is led by the Spanish
Ferrovial Group.
, London Gatwick Airport
, and London Stansted Airport
. In the following few years, the authority acquired responsibility for Glasgow International Airport
, Edinburgh Airport
, Southampton Airport
and Aberdeen Airport
. The Authority took on the Ministry of Civil Aviation Constabulary in 1946, which was renamed to become the British Airports Authority Constabulary, and was disbanded between 1974 and 1975.
As part of Margaret Thatcher
's moves to privatise government owned assets, the Airports Act 1986 was passed which mandated the creation of BAA plc as a vehicle by which stock market funds could be raised. The initial capitalisation of BAA plc was £1,225 million. In the early 1990s, the company sold Prestwick International Airport (now known as Glasgow Prestwick Airport).
In July 2006, BAA was taken over by a consortium led by Grupo Ferrovial, following a bid which valued the company at £10.1 billion ($20 billion). As a result, the company was delisted from the London Stock Exchange
(where it had previously been part of the FTSE100 index) on 15 August 2006, and the company name was subsequently changed from BAA plc to BAA Limited.
As a major client of the UK construction industry, it is a member of the Construction Clients' Group
, which represents client views to the government's Strategic Forum for Construction
.
and Baltimore-Washington International Thurgood Marshall Airport
(through its subsidiary BAA USA, Inc.), and a management contract with the City of Indianapolis
to run the Indianapolis International Airport
(as BAA Indianapolis, Inc.).
In December 2005, BAA made a winning bid of £1.2 billion for a 75% stake in Budapest Ferihegy International Airport
, the largest airport in Hungary
, which was being privatised by the Hungarian government. Following the take-over of BAA by Grupo Ferrovial in 2006, the decision was made to sell the stake in Ferihegy and this was completed in June 2007, when a consortium led by Hochtief AirPort
of Germany
purchased the stake.
writes that retail is important for BAA at Heathrow because, by law, landing charges are much less than those of similar-scope airports and retail shops help make up the difference.
access to their airports by setting unrealistic fees and mandatory handling for light aircraft.
Flights for recreational, commemorative, charity and record breaking purposes, light twin engined private aircraft and all light single engined aircraft are not permitted to use Heathrow Airport.
In 2011, landing a Cessna 152
at Stansted would cost £243, and parking for three days would cost an additional £216. These fees would be considered unaffordable by the majority of private pilots.
announced that BAA will be forced to sell three of the seven UK airports it owned at the time. Gatwick, Stansted and one of either Glasgow
or Edinburgh
airports within two years over fears the monopoly
position held by BAA over London
and Scotland
's airports could have “adverse effects for both passengers and airlines”. The sales are likely to raise between £3.5bn and £4bn.
On 19th October 2011, BAA Announced that Edinburgh Airport would be put up for sale in early 2012 with an aim to handing over the running of the site to a new owner by Summer 2012. Numerous groups are reported to have expressed interest, including a consortium of Scottish businesses headed by former Edinburgh Airport Manager, and Fraport, the owners of Frankfurt Airport
, Germany.
, Fraport
and Virgin Atlantic
were interested in this sale, either on their own or as part of a consortium of companies. Ferrovial and its partners (Government of Singapore Investment Corporation
and Quebec’s state pension fund
) had been seeking £1.8bn- £2bn when they opened the bidding process.
Eventually, the sale was confirmed on 21 October 2009 and formally completed on 3 December 2009, for a fee of £1.51 billion. This is almost 25 per cent less than BAA had expected Gatwick would fetch when the sale was announced a year previously. BAA sold the airport to Global Infrastructure Partners
, the fund backed by Credit Suisse
and General Electric
, who also operate London City Airport
. Ferrovial, the majority holder in BAA, said that it expected to make a capital loss of around 142 million euros (US$ 212.6 million) against its consolidated earnings following the sale.
from approaching its London Heathrow Airport. The injunction specifically targeted anyone belonging to, or protesting in the name of, AirportWatch, The No Third Runway Action Group and Plane Stupid. However, Airport Watch members included Friends of the Earth
, Greenpeace
, the Campaign to Protect Rural England, the World Development Movement
, the National Trust
and the Royal Society for the Protection of Birds
- all of whom were caught by what became known as the 'Mother of all Injunctions'. BAA denied seeking a blanket ban on airport protest. In the end BAA won a very much more limited injunction and the camp went ahead amid considerable worldwide publicity. Afterward, Duncan Bonfield, BAA director of corporate affairs, and Mark Mann, BAA head of media relations, resigned.
, a coalition of business groups, trade unions, tourism groups and the aviation industry (airports, airlines, aerospace manufacturers and air traffic control) launched in June 2007 to "balance the argument around issues of aviation and climate change" arguing that aviation does not contribute significantly to climate change, and that an expansion of aviation will aid the developing world, benefit social justice, and is essential for UK tourism and for the UK economy.
on the grounds of London Heathrow Airport
in the London Borough of Hillingdon
. Compass Centre previously served as a British Airways
flight crew centre. When London Heathrow Terminal 5 opened on 27 March 2008, British Airways staff, including crew check-in staff, relocated from the Compass Centre to Terminal 5.
BAA Limited's head office was previously located near London Victoria station in the City of Westminster
, London
.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
airport
Airport
An airport is a location where aircraft such as fixed-wing aircraft, helicopters, and blimps take off and land. Aircraft may be stored or maintained at an airport...
s (including Heathrow Airport
London Heathrow Airport
London Heathrow Airport or Heathrow , in the London Borough of Hillingdon, is the busiest airport in the United Kingdom and the third busiest airport in the world in terms of total passenger traffic, handling more international passengers than any other airport around the globe...
) and Naples Airport
Naples Airport
Naples Airport can refer to:*Naples International Airport in Naples, Italy*Naples Municipal Airport in Naples, Florida...
in Italy, making the company one of the largest transport companies in the world. BAA stems from British Airports Authority and is owned by a consortium led by Grupo Ferrovial, a Spanish firm specialising in infrastructure. The company's head office is located in The Compass Centre on the grounds of London Heathrow Airport
London Heathrow Airport
London Heathrow Airport or Heathrow , in the London Borough of Hillingdon, is the busiest airport in the United Kingdom and the third busiest airport in the world in terms of total passenger traffic, handling more international passengers than any other airport around the globe...
in the London Borough of Hillingdon
London Borough of Hillingdon
The London Borough of Hillingdon is the westernmost borough in Greater London, England. The borough's population was recorded as 243,006 in the 2001 Census. The borough incorporates the former districts of Ruislip-Northwood, Uxbridge, Hayes and Harlington and Yiewsley and West Drayton in the...
.
BAA makes money from charging landing fee
Landing fee
A landing fee is a charge paid by an aircraft to an airport company for landing at a particular airport. Landing fees can vary greatly between airports, with congested airports, ones where most of the landing slots are held by airlines being able to charge premium prices because of supply and...
s to airline
Airline
An airline provides air transport services for traveling passengers and freight. Airlines lease or own their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit...
s and increasingly from ancillary operations within those airports such as retail and property. BAA does not operate all UK airports - most are in the ownership of local authorities or other corporations.
BAA was once a constituent of the FTSE 100 Index
FTSE 100 Index
The FTSE 100 Index, also called FTSE 100, FTSE, or, informally, the footsie , is a share index of the 100 most highly capitalised UK companies listed on the London Stock Exchange....
but is now owned by FGP TopCo Limited, an international consortium, which includes Caisse de dépôt et placement du Québec
Caisse de dépôt et placement du Québec
The Caisse de dépôt et placement du Québec manages public pension plans in the Canadian province of Quebec. It was founded in 1965 by an act of the National Assembly...
and GIC Special Investments
Government of Singapore Investment Corporation
The Government of Singapore Investment Corporation Private Limited is a sovereign wealth fund established by the Government of Singapore in 1981 to manage Singapore's foreign reserves...
, that is led by the Spanish
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
Ferrovial Group.
History
The British Airports Authority was established by the passing of Airport Authority Act 1965, to take responsibility for three state-owned airports - London Heathrow AirportLondon Heathrow Airport
London Heathrow Airport or Heathrow , in the London Borough of Hillingdon, is the busiest airport in the United Kingdom and the third busiest airport in the world in terms of total passenger traffic, handling more international passengers than any other airport around the globe...
, London Gatwick Airport
London Gatwick Airport
Gatwick Airport is located 3.1 miles north of the centre of Crawley, West Sussex, and south of Central London. Previously known as London Gatwick,In 2010, the name changed from London Gatwick Airport to Gatwick Airport...
, and London Stansted Airport
London Stansted Airport
-Cargo:-Statistics:-Infrastructure:-Terminal and satellite buildings:Stansted is the newest passenger airport of all the main London airports. The terminal is an oblong glass building, and is separated in to three areas: Check-in concourse, arrivals and departures...
. In the following few years, the authority acquired responsibility for Glasgow International Airport
Glasgow International Airport
Glasgow International Airport is an international airport in Scotland, located west of Glasgow city centre, near the towns of Paisley and Renfrew in Renfrewshire...
, Edinburgh Airport
Edinburgh Airport
Edinburgh Airport is located at Turnhouse in the City of Edinburgh, Scotland, and was the busiest airport in Scotland in 2010, handling just under 8.6 million passengers in that year. It was also the sixth busiest airport in the UK by passengers and the fifth busiest by aircraft movements...
, Southampton Airport
Southampton Airport
Southampton Airport is the 20th largest airport in the UK, located north north-east of Southampton, in the Borough of Eastleigh within Hampshire, England....
and Aberdeen Airport
Aberdeen Airport
Aberdeen Airport is an international airport, located at Dyce, a suburb of Aberdeen, Scotland, approximately northwest of Aberdeen city centre. 2.76 million passengers used Aberdeen Airport in 2010, a reduction of 7.4% compared with 2009, making it the 15th busiest airport in the UK...
. The Authority took on the Ministry of Civil Aviation Constabulary in 1946, which was renamed to become the British Airports Authority Constabulary, and was disbanded between 1974 and 1975.
As part of Margaret Thatcher
Margaret Thatcher
Margaret Hilda Thatcher, Baroness Thatcher, was Prime Minister of the United Kingdom from 1979 to 1990...
's moves to privatise government owned assets, the Airports Act 1986 was passed which mandated the creation of BAA plc as a vehicle by which stock market funds could be raised. The initial capitalisation of BAA plc was £1,225 million. In the early 1990s, the company sold Prestwick International Airport (now known as Glasgow Prestwick Airport).
In July 2006, BAA was taken over by a consortium led by Grupo Ferrovial, following a bid which valued the company at £10.1 billion ($20 billion). As a result, the company was delisted from the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
(where it had previously been part of the FTSE100 index) on 15 August 2006, and the company name was subsequently changed from BAA plc to BAA Limited.
As a major client of the UK construction industry, it is a member of the Construction Clients' Group
Construction Clients' Group
The Construction Clients' Group is a United Kingdom construction organisation representing major clients of the construction industry. It represents the views of clients to the Strategic Forum for Construction....
, which represents client views to the government's Strategic Forum for Construction
Strategic Forum for Construction
The Strategic Forum for Construction is a United Kingdom construction industry organisation established in 2001 as the principle point of liaison between UK government and the major construction membership organisations...
.
Recent Expansion
Recently BAA has expanded into international operations, including retail contracts at Boston Logan International AirportLogan International Airport
General Edward Lawrence Logan International Airport is located in the East Boston neighborhood of Boston, Massachusetts . It covers , has six runways, and employs an estimated 16,000 people. It is the 19th busiest airport in the United States.Boston serves as a focus city for JetBlue Airways...
and Baltimore-Washington International Thurgood Marshall Airport
Baltimore-Washington International Thurgood Marshall Airport
Baltimore/Washington International Thurgood Marshall Airport is an international airport serving the Baltimore-Washington Metropolitan Area in the United States. It is commonly called BWI, BWI Airport or BWI Marshall, BWI being an initialism for "Baltimore/Washington International" and the...
(through its subsidiary BAA USA, Inc.), and a management contract with the City of Indianapolis
Indianapolis, Indiana
Indianapolis is the capital of the U.S. state of Indiana, and the county seat of Marion County, Indiana. As of the 2010 United States Census, the city's population is 839,489. It is by far Indiana's largest city and, as of the 2010 U.S...
to run the Indianapolis International Airport
Indianapolis International Airport
Indianapolis International Airport is a public airport located seven miles southwest of the central business district of Indianapolis, a city in Marion County, Indiana, United States. It is owned and operated by the Indianapolis Airport Authority...
(as BAA Indianapolis, Inc.).
In December 2005, BAA made a winning bid of £1.2 billion for a 75% stake in Budapest Ferihegy International Airport
Budapest Ferihegy International Airport
Budapest Liszt Ferenc International Airport , formerly known as Budapest Ferihegy International Airport, is the international airport serving the Hungarian capital city of Budapest, and the largest of the country's five international airports. The airport offers international connections primarily...
, the largest airport in Hungary
Hungary
Hungary , officially the Republic of Hungary , is a landlocked country in Central Europe. It is situated in the Carpathian Basin and is bordered by Slovakia to the north, Ukraine and Romania to the east, Serbia and Croatia to the south, Slovenia to the southwest and Austria to the west. The...
, which was being privatised by the Hungarian government. Following the take-over of BAA by Grupo Ferrovial in 2006, the decision was made to sell the stake in Ferihegy and this was completed in June 2007, when a consortium led by Hochtief AirPort
Hochtief AirPort
Hochtief AirPort is an airport management company headquartered in Essen. The company was founded in 1997 and is a subsidiary of the international construction service provider Hochtief Aktiengesellschaft....
of Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
purchased the stake.
Name
Although the company is adamant that its name is strictly "BAA Limited" and that the letters do not officially stand for anything, it is still widely (albeit erroneously) referred to as the "British Airports Authority" by both the media and the public - even though the Authority was dissolved following the 1986 privatisation.Owned and operated by BAA
- London Heathrow AirportLondon Heathrow AirportLondon Heathrow Airport or Heathrow , in the London Borough of Hillingdon, is the busiest airport in the United Kingdom and the third busiest airport in the world in terms of total passenger traffic, handling more international passengers than any other airport around the globe...
- London Stansted AirportLondon Stansted Airport-Cargo:-Statistics:-Infrastructure:-Terminal and satellite buildings:Stansted is the newest passenger airport of all the main London airports. The terminal is an oblong glass building, and is separated in to three areas: Check-in concourse, arrivals and departures...
- Aberdeen AirportAberdeen AirportAberdeen Airport is an international airport, located at Dyce, a suburb of Aberdeen, Scotland, approximately northwest of Aberdeen city centre. 2.76 million passengers used Aberdeen Airport in 2010, a reduction of 7.4% compared with 2009, making it the 15th busiest airport in the UK...
- Edinburgh AirportEdinburgh AirportEdinburgh Airport is located at Turnhouse in the City of Edinburgh, Scotland, and was the busiest airport in Scotland in 2010, handling just under 8.6 million passengers in that year. It was also the sixth busiest airport in the UK by passengers and the fifth busiest by aircraft movements...
- Glasgow International AirportGlasgow International AirportGlasgow International Airport is an international airport in Scotland, located west of Glasgow city centre, near the towns of Paisley and Renfrew in Renfrewshire...
- Southampton AirportSouthampton AirportSouthampton Airport is the 20th largest airport in the UK, located north north-east of Southampton, in the Borough of Eastleigh within Hampshire, England....
Previously owned and operated by BAA
- London Gatwick AirportLondon Gatwick AirportGatwick Airport is located 3.1 miles north of the centre of Crawley, West Sussex, and south of Central London. Previously known as London Gatwick,In 2010, the name changed from London Gatwick Airport to Gatwick Airport...
[Sold on 3 December 2009 to Global Infrastructure PartnersGlobal Infrastructure PartnersGlobal Infrastructure Partners is an infrastructure owning company, a private equity fund led by Credit Suisse and General Electric. Current assets include a 75% stake in London City Airport, Biffa Limited, a UK based waste management company and Gatwick Airport after recently acquiring it from...
for a fee of £1.51 billion]. - Glasgow Prestwick International AirportGlasgow Prestwick International AirportGlasgow Prestwick Airport is an international airport serving the Greater Glasgow urban area, situated northeast of the town of Prestwick in South Ayrshire and 32 miles from the city centre of Glasgow....
- Indianapolis International AirportIndianapolis International AirportIndianapolis International Airport is a public airport located seven miles southwest of the central business district of Indianapolis, a city in Marion County, Indiana, United States. It is owned and operated by the Indianapolis Airport Authority...
Retail management
- Baltimore-Washington International AirportBaltimore-Washington International Thurgood Marshall AirportBaltimore/Washington International Thurgood Marshall Airport is an international airport serving the Baltimore-Washington Metropolitan Area in the United States. It is commonly called BWI, BWI Airport or BWI Marshall, BWI being an initialism for "Baltimore/Washington International" and the...
- Boston Logan International AirportLogan International AirportGeneral Edward Lawrence Logan International Airport is located in the East Boston neighborhood of Boston, Massachusetts . It covers , has six runways, and employs an estimated 16,000 people. It is the 19th busiest airport in the United States.Boston serves as a focus city for JetBlue Airways...
- Pittsburgh International AirportPittsburgh International AirportPittsburgh International Airport , formerly Greater Pittsburgh Airport, Greater Pittsburgh International Airport and commonly referred to as Pittsburgh International, is a joint civil–military international airport located in the Pittsburgh suburb of Findlay Township, approximately west of...
Rail owner/management
- Heathrow ExpressHeathrow ExpressHeathrow Express is an airport rail link from London Heathrow Airport to London Paddington station in London operated by the Heathrow Express Operating Authority, a wholly owned subsidiary of BAA. It was opened by the then Prime Minister Tony Blair in 1998...
Owns and operates. - Heathrow ConnectHeathrow ConnectHeathrow Connect is a train operating company in London provided jointly by Heathrow Express and First Great Western, connecting Heathrow Airport with station. The service follows the same route as the Heathrow Express service but serves intermediate stations en route, thus connecting several...
Joint operation with First.
Heathrow management
BAA has garnered criticism for its handling of Heathrow, namely its predominant placement of shops rather than extra security aisles. After much criticism for this, BAA has now removed some shops to provide extra security lanes. The EconomistThe Economist
The Economist is an English-language weekly news and international affairs publication owned by The Economist Newspaper Ltd. and edited in offices in the City of Westminster, London, England. Continuous publication began under founder James Wilson in September 1843...
writes that retail is important for BAA at Heathrow because, by law, landing charges are much less than those of similar-scope airports and retail shops help make up the difference.
Snow Crisis
BAA has been accused of under-investing in snow and ice-fighting technology at Heathrow, which led to runway closures and severe delays in December 2010. Heathrow plans to spend just £3.5 million on this technology during 2010-2014, compared with spending of £8 million during the same period at Gatwick, an airport half its size.General Aviation
BAA operates its airports in a way that seeks to meet the needs of passengers and airlines while at the same time providing an appropriate return on investment.. BAA's pricing structure effectively prohibits mainstream General AviationGeneral aviation in the United Kingdom
General aviation in the United Kingdom has been defined as a civil aircraft operation other than a commercial air transport flight operating to a schedule. Although the International Civil Aviation Organization excludes any form of remunerated aviation from its definition, some commercial...
access to their airports by setting unrealistic fees and mandatory handling for light aircraft.
Flights for recreational, commemorative, charity and record breaking purposes, light twin engined private aircraft and all light single engined aircraft are not permitted to use Heathrow Airport.
In 2011, landing a Cessna 152
Cessna 152
The Cessna 152 is an American two-seat, fixed tricycle gear, general aviation airplane, used primarily for flight training and personal use.-Development:...
at Stansted would cost £243, and parking for three days would cost an additional £216. These fees would be considered unaffordable by the majority of private pilots.
Competition
After an enquiry from August 2008–March 2009, the UK Competition CommissionCompetition Commission
The Competition Commission is a non-departmental public body responsible for investigating mergers, markets and other enquiries related to regulated industries under competition law in the United Kingdom...
announced that BAA will be forced to sell three of the seven UK airports it owned at the time. Gatwick, Stansted and one of either Glasgow
Glasgow Airport
Glasgow Airport may refer to:*Glasgow International Airport, in Renfrewshire, the primary airport serving Glasgow, Scotland, United Kingdom.*Glasgow Airport , also known as Wokal Field, in Glasgow, Montana, United States.It may also refer to:...
or Edinburgh
Edinburgh Airport
Edinburgh Airport is located at Turnhouse in the City of Edinburgh, Scotland, and was the busiest airport in Scotland in 2010, handling just under 8.6 million passengers in that year. It was also the sixth busiest airport in the UK by passengers and the fifth busiest by aircraft movements...
airports within two years over fears the monopoly
Monopoly
A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...
position held by BAA over London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
and Scotland
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
's airports could have “adverse effects for both passengers and airlines”. The sales are likely to raise between £3.5bn and £4bn.
On 19th October 2011, BAA Announced that Edinburgh Airport would be put up for sale in early 2012 with an aim to handing over the running of the site to a new owner by Summer 2012. Numerous groups are reported to have expressed interest, including a consortium of Scottish businesses headed by former Edinburgh Airport Manager, and Fraport, the owners of Frankfurt Airport
Frankfurt Airport
Frankfurt Airport may refer to:Airports of Frankfurt, Germany:*Frankfurt Airport , the largest airport in Germany*Frankfurt Egelsbach Airport, a general aviation airport*Frankfurt-Hahn Airport , a converted U.S...
, Germany.
Sale of Gatwick Airport
BAA announced plans to sell Gatwick Airport on 17 September 2008. At that time, Gatwick Airport was valued at £1.8bn by regulators and it appeared that multiple firms including Macquarie GroupMacquarie Group
Macquarie Group Limited is a global investment banking and diversified financial services group, providing banking, financial, advisory, investment and funds management services to institutional, corporate and retail clients and counterparties around the world...
, Fraport
Fraport
Fraport AG Frankfurt Airport Services Worldwide is a German transport company which operates the Frankfurt International Airport serving Frankfurt am Main and holds interests in the operation of several other airports around the world. In the past the firm also managed the smaller Frankfurt-Hahn...
and Virgin Atlantic
Virgin Atlantic Airways
Virgin Atlantic Airways Limited is a British airline owned by Sir Richard Branson's Virgin Group and Singapore Airlines...
were interested in this sale, either on their own or as part of a consortium of companies. Ferrovial and its partners (Government of Singapore Investment Corporation
Government of Singapore Investment Corporation
The Government of Singapore Investment Corporation Private Limited is a sovereign wealth fund established by the Government of Singapore in 1981 to manage Singapore's foreign reserves...
and Quebec’s state pension fund
Caisse de dépôt et placement du Québec
The Caisse de dépôt et placement du Québec manages public pension plans in the Canadian province of Quebec. It was founded in 1965 by an act of the National Assembly...
) had been seeking £1.8bn- £2bn when they opened the bidding process.
Eventually, the sale was confirmed on 21 October 2009 and formally completed on 3 December 2009, for a fee of £1.51 billion. This is almost 25 per cent less than BAA had expected Gatwick would fetch when the sale was announced a year previously. BAA sold the airport to Global Infrastructure Partners
Global Infrastructure Partners
Global Infrastructure Partners is an infrastructure owning company, a private equity fund led by Credit Suisse and General Electric. Current assets include a 75% stake in London City Airport, Biffa Limited, a UK based waste management company and Gatwick Airport after recently acquiring it from...
, the fund backed by Credit Suisse
Credit Suisse
The Credit Suisse Group AG is a Swiss multinational financial services company headquartered in Zurich, with more than 250 branches in Switzerland and operations in more than 50 countries.-History:...
and General Electric
General Electric
General Electric Company , or GE, is an American multinational conglomerate corporation incorporated in Schenectady, New York and headquartered in Fairfield, Connecticut, United States...
, who also operate London City Airport
London City Airport
London City Airport is a single-runway airport. It principally serves the financial district of London and is located on a former Docklands site, east of the City of London, opposite the London Regatta Centre, in the London Borough of Newham in east London. It was developed by the engineering...
. Ferrovial, the majority holder in BAA, said that it expected to make a capital loss of around 142 million euros (US$ 212.6 million) against its consolidated earnings following the sale.
Heathrow protest injunction
In July 2007 BAA sought an injunction preventing potential protesters involved in the Camp for Climate ActionCamp for Climate Action
The Camps for Climate Action are campaign gatherings that take place to draw attention to, and act as a base for direct action against, major carbon emitters, as well as to develop ways to create a zero-carbon society...
from approaching its London Heathrow Airport. The injunction specifically targeted anyone belonging to, or protesting in the name of, AirportWatch, The No Third Runway Action Group and Plane Stupid. However, Airport Watch members included Friends of the Earth
Friends of the Earth
Friends of the Earth International is an international network of environmental organizations in 76 countries.FOEI is assisted by a small secretariat which provides support for the network and its agreed major campaigns...
, Greenpeace
Greenpeace
Greenpeace is a non-governmental environmental organization with offices in over forty countries and with an international coordinating body in Amsterdam, The Netherlands...
, the Campaign to Protect Rural England, the World Development Movement
World Development Movement
The World Development Movement is a membership organisation in the United Kingdom which campaigns on issues of global justice and development in the Global South....
, the National Trust
National Trust for Places of Historic Interest or Natural Beauty
The National Trust for Places of Historic Interest or Natural Beauty, usually known as the National Trust, is a conservation organisation in England, Wales and Northern Ireland...
and the Royal Society for the Protection of Birds
Royal Society for the Protection of Birds
Bird Notes and News was first published in April 1903.The title changed to 'Bird Notes' in 1947. In the 1950s, there were four copies per year . Each volume covered two years, spread over three calendar years...
- all of whom were caught by what became known as the 'Mother of all Injunctions'. BAA denied seeking a blanket ban on airport protest. In the end BAA won a very much more limited injunction and the camp went ahead amid considerable worldwide publicity. Afterward, Duncan Bonfield, BAA director of corporate affairs, and Mark Mann, BAA head of media relations, resigned.
Climate change
BAA is a founding member of Flying MattersFlying Matters
Flying Matters was a pro-aviation coalition in the United Kingdom. Members included tourist organisations, airlines, aerospace manufacturers, trade associations, airport operators, growers and others. Formed in June 2007, they have issued briefings, press releases, lobbied Members of Parliament and...
, a coalition of business groups, trade unions, tourism groups and the aviation industry (airports, airlines, aerospace manufacturers and air traffic control) launched in June 2007 to "balance the argument around issues of aviation and climate change" arguing that aviation does not contribute significantly to climate change, and that an expansion of aviation will aid the developing world, benefit social justice, and is essential for UK tourism and for the UK economy.
Ownership
| Owner | Shares | Corporation | Shares | Corporation |
|---|---|---|---|---|
 Spain Ferrovial Group |
55,87% | - | - | Airport Investment and Development Ltd |
 Canada Caisse de dépôt et placement du QuébecCaisse de dépôt et placement du Québec The Caisse de dépôt et placement du Québec manages public pension plans in the Canadian province of Quebec. It was founded in 1965 by an act of the National Assembly... |
26,48% | Airports Infrastructure Fund LP | 26,48% | |
 Singapore GIC Special InvestmentsGovernment of Singapore Investment Corporation The Government of Singapore Investment Corporation Private Limited is a sovereign wealth fund established by the Government of Singapore in 1981 to manage Singapore's foreign reserves... |
17,65% | Baker Street Investment Pte Ltd | 17,65% |
Head office
BAA Limited's head office is located in the Compass CentreCompass Centre
Compass Centre is an office building on the grounds of London Heathrow Airport in the London Borough of Hillingdon. The building serves as BAA Limited's head office...
on the grounds of London Heathrow Airport
London Heathrow Airport
London Heathrow Airport or Heathrow , in the London Borough of Hillingdon, is the busiest airport in the United Kingdom and the third busiest airport in the world in terms of total passenger traffic, handling more international passengers than any other airport around the globe...
in the London Borough of Hillingdon
London Borough of Hillingdon
The London Borough of Hillingdon is the westernmost borough in Greater London, England. The borough's population was recorded as 243,006 in the 2001 Census. The borough incorporates the former districts of Ruislip-Northwood, Uxbridge, Hayes and Harlington and Yiewsley and West Drayton in the...
. Compass Centre previously served as a British Airways
British Airways
British Airways is the flag carrier airline of the United Kingdom, based in Waterside, near its main hub at London Heathrow Airport. British Airways is the largest airline in the UK based on fleet size, international flights and international destinations...
flight crew centre. When London Heathrow Terminal 5 opened on 27 March 2008, British Airways staff, including crew check-in staff, relocated from the Compass Centre to Terminal 5.
BAA Limited's head office was previously located near London Victoria station in the City of Westminster
City of Westminster
The City of Westminster is a London borough occupying much of the central area of London, England, including most of the West End. It is located to the west of and adjoining the ancient City of London, directly to the east of the Royal Borough of Kensington and Chelsea, and its southern boundary...
, London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
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External links
- BAA - Official website
- Colin Matthews, BAA CEO discusses the proposed Heathrow third runway and new terminal(video)
- Sir Norman Payne - Daily Telegraph obituary