Article Abstract:
BAA has undergone a review of airport charges by the UK Civil Aviation Authority (CAA) relating to Stansted, Gatwick and Heathrow airports. The review has not recommended that the monpoly held by BAA on these three London airports should be ended, and profit forecasts for BAA have not been affected by the reduction in charges that the CAA has recommended. BAA appears to have a good relationship with the industry regulator, in contrast to UK utilities and their regulatory bodies.
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Article Abstract:
The UK Civil Avaiation Authority (CAA) will make recommendations in Jul 1996 for charges that BAA will levy for usage of Stanstead, Gatwick and Heathrow airports from April 1997. The recommendations on charges to be paid by airlines will cover a five year period. These charges do not produce a profit and account for some 33% of BAA's income, so stricter price controls would mean that BAA would subsidize airlines. BAA has been profitable due to its airport retail outlets.
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Article Abstract:
John Mowlem has sold a stake of 90% held in London City Airport (LCA) to Dermot Desmond, an entrepreneur, for 14.5 million pounds sterling. LCA needs investment and has reported operating losses in the decade to 1995, though could be profitable in 1996. John Mowlem shares rose following the sale announcement. Other sales of loss-making activities are likely. Restructuring and write-down will mean a loss of some 30 million pounds sterling for 1995.
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