BAA, the airport operator and terminal retail specialist, is to retain its focus on airport activities, despite a fall in profits in the year to 31 March following the abolition of duty-free sales in Europe.
Chief executive Mike Hodgkinson says a strategic review has identified the "development of an international airport business, using our core skills in airport and retail management", as a key aim. BAA already manages all or part of eight airports in the USA, Australia, Italy and Mauritius, in addition to seven in the UK (London Heathrow and Gatwick included), where it is based.
The group's profit before tax and exceptionals dropped 3% to £494 million ($745 million) last year, although second-half figures showed some recovery. The BAA-owned Heathrow Express high- speed rail link to central London returned a $4.1 million operating profit in its first full year of operation. BAA also announced a plan to buy back £400 million of its shares, to pacify shareholders anxious at the sharp decline in share price.
Source: Flight International
