BAA Attacks Watchdog’s Plans for Curb on Profits

A HUGE row has broken out between Spanish-owned Heathrow operator BAA and the Civil Aviation Authority over the regulator’s planned clampdown on the London airports group’s profitmaking.

BAA today told the CAA its clampdown is “unprecedented and inconsistent”, and based on “untested and flawed methodology”.

Taken over by Ferrovial of Spain in the summer, BAA has already been put under the cosh over a separate Office of Fair Trading probe that could lead to a break-up of its monopoly ownership of Heathrow, Gatwick and Stansted.

At Christmas it was told by the CAA that the rates at which it can borrow to invest in its airports could be cut from 7.55% to as little as 5.9% at Heathrow.

BAA chief executive Stephen Nelson said such cuts endanger further upgrades at Heathrow after next year’s opening of Terminal 5.

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