BAA owner's shares dive on Heathrow fines fears
Wednesday 29 December 2010
Shares in Ferrovial, the Spanish construction group that owns BAA, the Heathrow and Stansted airport operator, are under pressure after it emerged that the Coalition will introduce tough fines on underperforming airports.
BAA has come under fire for cancelling flights and even briefly shutting Heathrow airport during the cold snap. The company has been heavily criticised for not having enough de-icer to clear its runways during the crisis. It had stockpiled supplies sufficient for just 10 days.
At the weekend, the Transport Secretary, Philip Hammond, was reported to have called for severe financial penalties to be levied on service failures, including poor preparation for bad weather. At present, airport operators only face penalties handed down by the Civil Aviation Authority, which are for more easily quantifiable problems than service quality, such as seating availability and security queues.
Investors in Madrid reacted badly to the news, sending Ferrovial shares down 2.4 per cent to €7.64 by close of trading on Monday. Ferrovial continued to plunge yesterday and was down a further 0.33 per cent.
BAA spent just £500,000 on anti-snow equipment last year, barely half the 2009 salary and bonus of the chief executive, Colin Matthews. He has waived his bonus this year and signed off plans to spend £10m on a "snow investment programme".
Ferrovial is playing down suggestions the problems could harm plans to sell a 10 per cent stake in BAA. The group wants to cut its majority shareholding to below 50 per cent so it would no longer have to hold BAA's €13bn debt on the group balance sheet.
Although publicly traded, Ferrovial's dominant shareholders are the family of the company's founder, Rafael del Pino, with an estimated 46 per cent stake.
- 1 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
- 2 UK weather: Snow to fall in the coming week with sub-zero temperatures to last until early February
- 3 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 4 Warriors in ancient Iraq suffered Post-Traumatic Stress Disorder more than 3,000 years ago, say researchers
- 5 This crazy skiing video will leave you feeling queasy
Paris attacks: Do not call Charlie Hebdo killers 'terrorists', BBC says
Rowan Atkinson to sell £10 million McLaren 'supercar' he crashed into a tree and a lamppost
UK weather: Snow to fall in the coming week with sub-zero temperatures to last until early February
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Warriors in ancient Iraq suffered Post-Traumatic Stress Disorder more than 3,000 years ago, say researchers
Nigel Farage: NHS might have to be replaced by private health insurance
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
George Galloway condemns 'racist, Islamophobic, hypocritical rag' Charlie Hebdo at freedom of speech rally
British Muslim school children suffering a backlash of abuse following Paris attacks
Greece elections: Syriza and EU on collision course after election win for left-wing party
iJobs Money & Business
£30000 - £32000 per annum + benefits : Ashdown Group: A highly successful, int...
£18000 - £20000 per annum: Recruitment Genius: This rapidly expanding business...
£25 - 28k + Bonus: Guru Careers: An In-house / Internal Recruiter is needed to...
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...