Abstracts » Business

Oil, cars, airports and horsepower

Article Abstract:

John Egan is chief executive of BAA and he plans to expand overseas where airport privatizations are bringing opportunities for BAA to run airports. The company has already boosted its profit by increasing shopping facilities at airports, though BAA did not manage to acquire Allders International. Allders manages duty-free stores in airports in London, England. BAA also plans to develop a rail link between Paddington, London and Heathrow airport. The company also plans to build offices at airports but does not want to invest in real estate away from airports.

Interview

---

BAA: shopping in the clouds

Article Abstract:

BAA runs duty-free shops world wide and airports in the United Kingdom. The company also rents out real estate. The key activity that BAA is involved in is running Gatwick and Heathrow airports, accounting for 87% of BAA's operating profit for 1997. Retail income at airports is increasing and is not regulated, unlike airline charges. The company has invested in a railroad link between Heathrow and London, England. BAA's future will be affected by a decision on whether it can build a fifth terminal at Heathrow airport.

---

Turbulence ahead

Article Abstract:

BAA's profit is forecast at 410 million pounds sterling for 1995 to 1996, rising to some 460 million pounds for 1996 to 1997. Stockbrokers are divided in their assessment of the company, with a sample of six showing two in favor of selling, two buying and two holding. Buyers include Smith New Court which foresees good earnings growth, while sellers include Williams de Broe which sees problems when duty-free revenue has to be replaced following the end of duty-free sales inside the European Union from 1999.

Some parts © 2012 Advameg, Inc.