Tag Archives: Heathrow

Heathrow remains top despite fall in transfer traffic

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Heathrow remains top despite fall in transfer traffic

Nov 11, 2011 07:45AM GMT

Heathrow’s position as the UK’s major hub airport has been confirmed by a new UK airports study – although the proportion of connecting passengers dropped last year.

Research by the Civil Aviation Authority found that Heathrow had the highest proportion of connecting passengers of all airports in England last year with 36% changing aircraft, down from 38% in 2009 but up from 2008’s figure of 35% and 34% in 2007.

The majority of passengers using Heathrow and London City airports in 2010 were foreign residents who represented respectively 58% and 51% of their total passengers.  Heathrow’s percentage of foreign passengers has risen from 55% since 2007.

London City was the most “business-centric” airport in the study, with 63% of its passengers travelling for business, returning almost to the airport’s pre-recession 2006 level and representing a seven percentage point improvement on 2009. The next highest was Humberside with 32% and Heathrow with 30%.

The airports with the highest proportion of leisure passengers were Doncaster with 97% and East Midlands with 92%. Passenger income in general continued to grow when measured against airports surveyed in 2008, 2009 and 2010.

At Heathrow, the average leisure passenger’s household income increased by £2,000 to £60,000 and at Manchester the average business traveller’s income rose from £65,000 to £68,000.

Average leisure passenger household income dropped slightly at both Gatwick and Luton airports.

Travellers from Heathrow took a higher proportion of trips over two weeks in length than anywhere else, at 23%. London City had the lowest proportion at only 2%.

Outside of London, the highest percentage of trips over two weeks was recorded at Humberside, with 18%. The lowest was at East Midlands at 6%.

The survey was based on interviews with 200,000 departing passengers about their travel patterns at five London-area airports – Heathrow, Gatwick, Stansted, Luton and London City – and seven regional airports – Birmingham, Doncaster, Humberside, Leeds Bradford, Liverpool, Manchester and East Midlands.

CAA regulatory policy director Iain Osborne said: “The CAA surveys people using the UK’s airports to make sure that we understand how and why people travel by air to make sure that our regulation is tailored to their needs.

“This year’s results will inform our response to the Government’s work to develop an Aviation Policy Framework – with information about how passengers use the country’s major airports particularly relevant to government.”

Heathrow owner slashes debt through stake sale

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Heathrow owner slashes debt through stake sale

Oct 11, 2011 07:50AM GMT

Ferrovial, the Spanish majority owner of BAA, has sold almost 6% of the UK’s leading airports operator for €325 million in a move that slashes its debt burden.

The sale to investment group Alinda Capital Partners leaves infrastructure company Ferrovial with a 49.99% holding in BAA, owner of Heathrow, Stansted, Glasgow and Edinburgh airports.

The sale of the 5.9% stake, less than an originally planned 10%, implied a total value for BAA of €5.52 billion (£4.7 billion), substantially less than the £10.3 billion Ferrovial paid for the airport operator in 2006. However, it is more than 2.5 times the value analysts have placed on BAA.

The company has already recouped £1.5 billion from the sale of Gatwick airport two years ago.

Ferrovial chief executive Iñigo Meirás Amusco said: “We wanted to put a real market value on BAA, as before it was low and now we have value more than double market expectations.”

By trimming its shareholding below 50%, Ferrovial will be allowed to remove BAA debts from its accounts, cutting its net debt from €19.7 billion to €5.2 billion.

BAA is poised to announce which of Edinburgh or Glasgow airports it is to sell following a ruling by the Competition Commission. It remains under an order to dispose of Stansted, but has lodged a further appeal.

The operator sold Gatwick in 2009 for £1.5 billion to a consortium led by Global Infrastructure Partners ahead of being ordered to do so by the Competition Commission.

British Airways swoops for BMI Heathrow slots

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British Airways swoops for BMI Heathrow slots

Sep 23, 2011 08:00AM GMT

British Airways has swooped to buy take off and landing slots at Heathrow from loss-making rival BMI British Midland.

Six daily slot pairs at the capacity-squeezed London hub have been acquired by BA for an undisclosed sum.

The deal comes amid speculation over the future of BMI after owner Lufthansa hired Morgan Stanley as adviser for a potential sale.

The main attraction of BMI is that it holds about 11% of the available slots at Heathrow.

Slots at the airport are the most sought-after in the industry but rarely become available and are expensive.

BA parent company International Airlines Group said today: “IAG has approved the acquisition by British Airways of six daily slot pairs at London Heathrow from BMI British Midland International.

“The slots will be used by British Airways from late October 2011 with the airline looking to expand both its long-haul and short-haul network at the airport.”

BMI made a loss of £106 million in the first six months of this year, with BA seen as a potential suitor for the airline.