BAA's investors to share £240m windfall from London airports
The owner of Heathrow and Stansted has been accused of "profiteering" after setting out plans to pay its foreign shareholders a £240m dividend this year.
BAA (SP) Ltd, which runs the two London airports as well as the Heathrow Express train line, said the payout would be "set initially" at £60m per quarter to shareholders this year. That is the first windfall for investors since 2006, when BAA was acquired by a consortium led by the Spanish construction group Ferrovial for £10.3bn. The dividend plans mean Ferrovial – which now has a 49.99 per cent stake in BAA after a share sale last year – can expect to pocket some £120m this year. The investors sharing the remaining £120m are the Canadian pension fund CDPQ, which owns 26.5 per cent, Singapore's sovereign wealth fund GIC, with 17.65 per cent, and the US infrastructure group Alinda Capital Partners, which owns 5.88 per cent.
However Ryanair hit back that the windfall had been paid by BAA "overcharging" passengers, with the carrier demanding the immediate sale of Stansted, which BAA has been ordered to offload by the Competition Commission.
The airline said: "Over the past five years BAA has doubled its charges to airlines at Stansted, and is generating excess profits which it is now distributing to shareholders. However, during this five-year period, traffic at Stansted has collapsed from over 24 million in 2007 to just over 18 million in 2011."
BAA has admitted that passenger numbers at Stansted during 2011 will be 3.1 per cent below the previous year at 17.3 million. That's partly thanks to airlines including Ryanair, easyJet and Air Berlin cutting routes at the airport.
Ryanair spokesman Stephen McNamara added: "BAA is further enriching its Spanish shareholders while it strangles London traffic, tourism and jobs... BAA is an abusive airport monopoly which has engaged in significant overcharging and monopoly profiteering at Stansted."
BAA said of its dividend plans: "Payments will reflect BAA's ability to continue to access stable financial markets to finance its substantial ongoing capital investment programme at Heathrow. [BAA] expects to spend well over £1bn on Heathrow's capital investment programme during 2012, particularly accelerating activity on construction of the new Terminal 2."
Heathrow handled 5.2 million passengers in November, a drop of 0.5 per cent on the same month last year.
BAA is appealing against the CC's ruling in 2009 that it must sell Stansted. BAA declined to comment on the "profiteering claims.
A cautionary tale for ambitious would-be authors
X Factor judge will appear in court later this month
Trenton Oldfield deportation: Boat Race protester allowed to stay in UK over fears his Indian wife would face racism in Australia
Sir Ian McKellen hits back at Damian Lewis' 'fruity actor' claims
Gurdwaras-turned-food banks: Sikh temples are catering for rise in Britain’s hungry
Teenage girl convicted of robbery after taking pre-crime selfie wielding knife
'I'm experiencing austerity as well', says Princess Michael of Kent
- 1 Dear Sir Jimmy Savile: A comedian's words of valediction to the nation's trusted uncle
- 2 Gurdwaras-turned-food banks: Sikh temples are catering for rise in Britain’s hungry
- 3 Teenage girl convicted of robbery after taking pre-crime selfie wielding knife
- 4 Newly vegan Beyoncé wears fox fur to dine in meat free restaurant
- 5 'I'm experiencing austerity as well', says Princess Michael of Kent
- < Previous
- Next >
iJobs Money & Business
£60000 per annum: Harrington Starr: Support Analyst (Back Office, CRM, Sharepo...
£65000 - £80000 per annum + Excellent Bonus, Package : Harrington Starr: Busin...
£75000 - £90000 per annum + UNCAPPED OTE + PACKAGE: Harrington Starr: European...
attractive: Citifocus: Prestigious Investment Management Company seeks a finan...