BAA profits take a knock from landing charges
Tuesday 30 July 1996
Revealing a 2.4 per cent increase in pre-tax profits to pounds 130m, boosted by higher retail sales, BAA chief executive, Sir John Egan, said the recently published Monopolies and Mergers Commission report on future airport charges for airlines together with the Civil Aviation Authority's response "create a particularly challenging environment for BAA for the next five years".
Earlier this month the CAA, BAA's regulator, published a proposal document on landing charges, which said BAA should cut pounds 150m from airport fees over the next five years following an enquiry by the MMC. Though many observers felt the terms were less onerous than expected, Sir John said BAA was discussing the detailed implications of the review with the CAA and its larger airline customers.
In the three months to 30 June, net retail income rose to pounds 105m with the increase per passenger strongest at Gatwick where it rose by 12 per cent. BAA's airports, which include Gatwick, Heathrow and Stansted, handled 24.7 million passengers in the quarter, up 3.7 per cent on the same period last year.
Capital expenditure during the quarter was pounds 86m, which included the completion of the departure lounge at Heathrow's terminal 2 which provided an extra 24,600 square feet of retail space.
BAA said the programme to smooth out charges between peak and off-peak times knocked around pounds 4.6m off profits.
Marshall Whiting, an analyst at brokers Societe Generale Strauss Turnbull, said the figures, which were in line with expectations, were over-shadowed by the regulatory issues. "There will be another few weeks of consultation and the CAA will probably make its final price proposals around October."
Under the CAA proposals landing fees at Gatwick and Heathrow would be allowed to rise by no more than inflation less 3 percentage points while prices at Stansted prices could rise by inflation less 1 percentage point. The prices are set for the next five years from next April.
BAA's total revenues in the third quarter rose by 6.4 per cent to pounds 347m. Sir John Egan said the year had seen a positive start with sales and profits up relative to passenger numbers. BAA shares closed a penny lower at 471p.
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
Panic Saturday: 13 million Britons spend £1.2bn – while 13 million others across the country live in poverty unable to afford food
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...