BAA takes a £225 million hit on Gatwick sale
02 Nov 2009
UK airports operator, BAA, has revealed a loss of £225 million on the sale of Gatwick Airport to Global Infrastructure Partners last week. Valued at £1.735 billion, London's second-largest international airport was sold for £1.51 billion.
According to reports, BAA's pre-tax loss now shoots up to £784.7m in the period up to the end of September, as against £519.5 million in the year-ago period.
BAA, which was sold for £10 billion in 2006 to a consortium headed by Spanish support services group Ferrovial, said its overall performance has been good. It also said proceeds of the sale will be used to retire debt.
According to industry sources, this may stand at a net of £9.77 billion.
The company faces further complications ahead as it contests a ruling by the Competition Commission that it must now proceed to sell Stansted and either Edinburgh or Glasgow Airports.
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