Heathrow Airport Holdings facts for kids
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| Private | |
| Traded as | (as BAA plc)
LSE: BAA FTSE 100 component (until 2006) |
| Industry | Transport |
| Founded | 13 December 1985 (as BAA plc) |
| Headquarters | Compass Centre London, England, UK |
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Key people
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Thomas Woldbye (CEO) Lord Paul Deighton (Chairman) |
| Products | Airport operations and services |
| Revenue | £3,559 million (2024) |
|
Operating income
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£1,504 million (2024) |
| £684 million (2024) | |
|
Number of employees
|
8,286 (2024) |
| Parent | FGP Topco Limited |
| Subsidiaries | Heathrow Airport Heathrow Express |
Heathrow Airport Holdings is a company that runs and manages Heathrow Airport in London, England. It started as BAA plc when the government decided to sell off the British Airports Authority in 1985. This process is called privatisation, where a government-owned business becomes a private company.
In 2006, a group of companies led by Ferrovial, a Spanish firm, bought BAA plc. Over the next few years, the company had to sell off many of its airports, including Gatwick and Stansted. By 2012, Heathrow was its main business. So, the company changed its name to Heathrow Airport Holdings to show this new focus.
The company's main office is at the Compass Centre, which is located on the grounds of Heathrow Airport. Heathrow Airport Holdings makes money in a few ways. It charges airlines fees for landing planes and for each passenger who flies from the airport. It also earns money from shops, car parks, and other businesses at the airport.
Contents
History of Heathrow Airport Holdings
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How the British Airports Authority Started
The British Airports Authority was created in 1965. Its job was to take over four airports that the government owned. These airports were Heathrow Airport, Gatwick Airport, Prestwick Airport, and Stansted Airport.
Later, the authority also took over Edinburgh Airport (in 1971), Glasgow Airport (in 1975), and Aberdeen Airport (in 1975). In 1986, the government decided to sell the British Airports Authority. It became a private company called BAA plc.
Becoming a Global Company and Being Bought Out
In 1991, BAA started managing shops at Pittsburgh International Airport in the USA. In 2005, BAA bought a large part of Budapest Ferihegy International Airport in Hungary.
In 2006, a group of companies led by Ferrovial bought BAA for a lot of money. Because of this, BAA was no longer listed on the London Stock Exchange. After being bought, BAA sold its share in the Hungarian airport in 2007.
BAA also expanded its business in the United States. It managed shops at airports like Boston Logan International Airport and Baltimore-Washington International Airport. It also managed Indianapolis International Airport. However, BAA sold its US businesses in 2010.
Selling Off Airports
From 2008 to 2009, the UK Competition Commission looked into BAA's business. They were worried that BAA had too much control over airports in London and Scotland. This could be bad for passengers and airlines.
So, BAA was told to sell three of its seven UK airports within two years. These were Gatwick, Stansted, and either Glasgow or Edinburgh airports.
BAA announced it would sell Gatwick Airport in 2009. The sale was completed in December 2009. Global Infrastructure Partners, a company that also runs London City Airport, bought Gatwick.
In 2011, BAA announced that Edinburgh Airport would also be sold. It was sold to Global Infrastructure Partners in 2012. Later that year, the company changed its name to Heathrow Airport Holdings Limited.
In 2013, Stansted Airport was sold to the Manchester Airports Group. This group is owned by the councils of Greater Manchester.
In 2014, Heathrow Airport Holdings sold its remaining airports: Glasgow, Southampton, and Aberdeen. These were sold to AGS Airports, a group that includes Ferrovial. This sale allowed Heathrow Airport Holdings to focus only on Heathrow Airport.
In 2024, Ferrovial announced it would sell its share in Heathrow Airport Holdings. This sale was to Ardian and the Public Investment Fund of Saudi Arabia. The deal was completed in December 2024.
Impact of the COVID-19 Pandemic
In 2020, the COVID-19 pandemic greatly reduced air travel. This caused the company to have large debts. Even though it had high debts, most of its shares were owned by companies outside the UK. The company asked to increase airport charges, but this was not approved by the Civil Aviation Authority.
Company Leadership
Chairmen of the Board
- Nigel Foulkes (1972–1977)
Chief Executive Officers
- Jeremy Marshall (1987–1989)
- Sir John Egan (1990–1999)
- Michael Hodgkinson (1999–2003)
- Mike Clasper (2003–2006)
- Stephen Nelson (2006–2008)
- Colin Matthews (2008–2014)
- John Holland-Kaye (2014–2023)
- Thomas Woldbye (2023 - Current)
About the Company
When the company was called BAA, it said the letters didn't stand for anything specific anymore. However, many people still called it the "British Airports Authority." It's important not to confuse BAA with BA, which is the short name for British Airways.
The company's old logo, with three green triangles, was designed in 1986. In 2012, the company changed its name to Heathrow Airport Holdings. This was because Heathrow Airport made up 95% of its business after selling off other airports.
Who Owns the Company
| Owner | Shares |
|---|---|
| Ardian | 32.61% |
| Qatar Investment Authority | 20% |
| Public Investment Fund | 15.01% |
| GIC | 11.2% |
| Australian Retirement Trust | 11.18% |
| China Investment Corporation | 10% |
Company Headquarters
The company's main office is at the Compass Centre at Heathrow Airport. This building used to be a place where British Airways flight crews checked in. When Heathrow Terminal 5 opened in 2008, British Airways staff moved there.
The original BAA plc's head office was in City of Westminster, near London Victoria station.
Supporting Airport Growth
BAA was one of the first members of a group called Flying Matters. This group started in 2007. It aimed to show that air travel was important for the economy and didn't cause as much climate change as some thought. The group also argued that more air travel would help developing countries and tourism. However, the group was closed in 2011 after BAA and other members left.
Plans for Heathrow Airport Expansion
Since 2009, the company has been working on a plan to build a third runway at Heathrow Airport. The UK government approved this plan in 2018. The company is still working on how to pay for this large expansion.
Current Operations
Airports Owned and Operated
Rail Services
- Heathrow Express (runs with Great Western Railway)
Past Operations
Airports Previously Owned and Operated
- Aberdeen Airport (sold in 2014)
- Edinburgh Airport (sold in 2012)
- Gatwick Airport (sold in 2009)
- Glasgow Airport (sold in 2014)
- Glasgow Prestwick Airport (sold in 1992)
- Naples International Airport (sold in 2010)
- Southampton Airport (sold in 2014)
- Stansted Airport (sold in 2013)
Airports Previously Managed
- Baltimore-Washington International Airport (managed shops only)
- Boston Logan International Airport (managed shops only)
- Indianapolis International Airport
- Pittsburgh International Airport (managed shops only)
- Sir Seewoosagur Ramgoolam International Airport
Rail Services (Past)
- Heathrow Connect (stopped running in 2018)
Retail (Past)
- World Duty Free (managed all of BAA's airport shops, sold in 2008)
See also
- List of companies based in London
