Frequently asked questions

We get asked all kinds of questions about BAA and the work we do. Here we've answered the ones that crop up most often:
about BAA, responsible growth, safety and security, retail and Terminal 5.

About BAA
Is BAA the British Airports Authority?
No, BAA is not an acronym. BAA is a different company formed in 1986 under the Airport Act when the British Airports Authority was dissolved and its authorities, property and liabilities were transferred to BAA. Learn more about BAA's history.

Why is BAA allowed to own three London airports?
We have worked hard to retain control of our London airports despite calls for them to be broken up, and we do believe this is what is best for London. We comply with strict regulation. In fact, the price we charge airlines is set by two industry regulators, the Civil Aviation Authority and the Competition Commission.

What does owning three London airports mean for BAA?
For starters it gives us a strong balance sheet. This means we can borrow money at a good rate and invest in new airport facilities such as Heathrow Terminal 5 which is costing over £4 billion. It also allows us to invest around £1.5 billion a year in other airport facilities. And, for the UK’s travellers, it helps make sure London remains the best connected city in the world. Without this strength, London's airports could run the risk of underinvestment.

Would breaking up BAA give airlines and the public a wider choice?
No. Breaking up BAA is not in the public interest – it would mean airports would lack investment, quickly become full and airlines would put up their prices. For this reason BAA will retain its current, strong position. Back to top

Responsible growth

Why does BAA want to build more runways?
There hasn’t been a new full-length runway built in the south east for over 60 years. Gatwick and Stansted are full at peak times and Heathrow is full all the time. As a result, air transport, an important industry for the UK, is being lost to Paris, Frankfurt and Amsterdam. What’s more, demand for air travel in the south east is predicted to increase from 117 million passengers in 2000 to 300 million in 2030 – we need to allow for this extra demand.

So have you been allowed to build more runways?
The government has decided that we can build two new runways – one at Stansted, the other at Heathrow.

How much will the new runway cost?
It’s estimated that the new Stansted runway will cost £4 billion. This will be for an airport that serves 80 million passengers a year and includes the development of terminal buildings, airfield facilities and improvements to the transport infrastructure.

At BAA we plan to stagger the development to match demand with the first phase costing under £2 billion. This is still a big investment but the bulk of this cost is for improving road and rail access. And, as one of the biggest developers in the country, we are confident that we can deliver excellent value and keep costs to a minimum.

Can BAA really afford to develop Stansted?
We fully understand the costs involved and are confident the development can be funded from existing company resources.

Will the taxpayer end up footing the bill?
Aviation is self-financing. In fact, the taxpayer hasn’t had to pay for any work on airports since BAA was formed in 1987. With the ever-increasing demand from passengers, the improvements will be paid for through ticket sales.

What is BAA’s view on regional airports?
Regional airports will continue to grow in coming years – offering more choice to more people. This is also good for the economy as it spreads the wealth generated by airports around the country.

Can aviation grow in a sustainable way?
We believe aviation can address its negative impact and grow in a sustainable way. However it will mean making progress through society, environment and economy at the same time. If we just consider the environment, and forget the economy and society, our actions will not be sustainable. But the same is true if we only focus on the economy.

How can aviation reduce its impact on the environment?
We think the best way to do this is through emissions trading. Companies are set limits on their overall emissions and if they exceed their limit they need to buy surplus from other companies. This means that industries which cut their emissions can sell their surplus on.

Should the airline industry pay a ‘green tax’?
Passengers already pay Air Passenger Duty which is a straightforward tax designed to reduce demand. But it does little to reduce emissions or encourage aviation companies to adopt more sustainable practices. Emissions trading offers the best solution.

What is BAA’s position on night flights?
We understand that there’s a fine balance between the economic benefits of early morning flights and the disruption it can cause to local residents. The number of flights we are able to operate is strictly controlled by the Department for Transport. Back to top

Safety and security

Are our airports safe from terrorism?
Security is our number one priority and our systems and staff are among the best in the world. Of course, we can’t say that air travel is 100% risk free but we are working together with many organisations to keep air travel safe. There’s a huge amount of work that goes on behind the scenes to keep everyone safe at all times. Back to top

Retail

Why is BAA involved in retail?
Retail is a key part of our business activities. The money we make from retail subsidises the charges we make to airlines and helps keep our airports some of the cheapest in the world. In turn, this has created a thriving airline business and gives passengers more choice. Many passengers enjoy the airport shopping experience.

If you had fewer shops, could you manage more flights?
The biggest constraint on the number of flights is runway space and aircraft parking bays. So the number of shops has little impact on the number of flights running. Back to top

Terminal 5

How is the T5 project going?
T5 is a huge and complex project costing £4.2 billion. But the good news is we’re already over 50% complete, on budget, and on schedule to open in March 2008. We’ve planned every detail very carefully and use only tried and trusted techniques. Once completed, T5 will showcase the best in British engineering and provide an impressive entrance to the UK. Back to top