BAA says Ferrovial has faith in decision to buy - Industry sectors - Times Online

BAA says Ferrovial has faith in decision to buy - Industry sectors - Times Online: "BAA says Ferrovial has faith in decision to buy
By Angela Jameson and David Robertson



BAA, the owner of Heathrow, has dismissed fears that its new Spanish owners, Ferrovial, may be rethinking their �10.3 billion purchase of the airport group.
Ferrovial�s shares plunged 7 per cent this week, as investors reacted to news that a plot to blow up transatlantic aircraft in flight had been foiled and that passengers at British airports would be subject to strict new security measures.


Analysts speculated that retail businesses at BAA�s airports would suffer if long-term restrictions on hand luggage succeeded in deterring passengers from flying.
Ferrovial has had control of the British airports group since July 29 and shares in the company will be delisted on Tuesday. Ferrovial said that it was far too early to know what impact any new measures might have on the business.
BAA�s revenues from retail reached �862 million last year, of which �385 million came from its subsidiary, World Duty Free.
A spokesman for BAA in London said: �The people in Spain paid the price they did beacuse they have confidence in their approach. They have said that they will let them get on with running the business.�
But analysts said that given Ferrovial�s highly geared purchase of the airport group any fall in revenues could cause problems. Gert Zonneveld, analyst at Panmure Gordon, said: �If no duty free drinks are available that is quite a severe impact because it�s such a money maker. If airports see revenue from this decline they may have to increase the landing fees they charge to recover that income.� "