BAA’s Budapest Bid

AIRPORTS operator BAA was in pole position to secure control of Budapest Airport yesterday after putting forward a pounds 1.26bn bid.

The group, which runs London’s Heathrow, Gatwick and Stansted airports, said it was now in talks to try to reach agreement on a deal after placing the top bid in a three-way battle.

The Hungarian privatisation agency said it was not announcing a winner in the race for the airport but was announcing an “order” among the bids. It said the tender process remained open until a contract was signed.

The other bidders are Frankfurt airport operator Fraport and German construction group Hochtief.

BAA is attracted by Budapest Airport’s scope for development. It is as big as Heathrow in terms of the size of its land but carries far fewer passengers. It would also help BAA cash in on the trend among low-cost airlines to set up routes to Eastern Europe