Heathrow Airport Holdings facts for kids
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| Private | |
| Industry | Transport |
| Founded | 13 December 1985 (as BAA plc) |
| Headquarters | The Compass Centre Nelson Road Hounslow TW6 2GW |
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Key people
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Thomas Woldbye (CEO) Lord Deighton (Chairman) |
| Products | Airport operations and services |
| Revenue | £2,765 million (2015) |
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Operating income
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£223 million (2015) |
| £169 million (2015) | |
| Owner | FGP Topco Limited |
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Number of employees
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6,500 approx. (2016) |
| Subsidiaries | Heathrow Airport |
Heathrow Airport Holdings is a company based in the United Kingdom. It is famous for running Heathrow Airport, which is one of the busiest airports in the world!
This company used to operate many other UK airports, like Gatwick Airport and Stansted Airport. However, a group called the Competition Commission asked them to sell these airports. This was done to make sure no single company had too much control over airports.
The company started in 1985 as BAA plc. This happened when the government decided to sell off some of its businesses, a process called privatisation. BAA plc was once a very big company, even listed on the FTSE 100 Index.
In 2006, a Spanish company called Ferrovial and its partners bought BAA plc. Ferrovial is a company that builds and manages things like roads and airports. After selling most of its other airports, the company changed its name to Heathrow Airport Holdings in 2012. This new name shows that its main focus is now on Heathrow Airport.
The company's main office is located at the Compass Centre. This building is right on the grounds of Heathrow Airport in Hounslow, London. Heathrow Airport Holdings makes money in a few ways. They charge airlines fees for landing planes and for passengers flying out. They also earn money from shops, car parks, and other services at the airport.
Contents
History of Heathrow Airport Holdings
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How the Company Started
The company began as the British Airports Authority. It was created by a special law in 1965. Its job was to take over four airports from the government. These airports were Heathrow Airport, Gatwick Airport, Prestwick Airport, and Stansted Airport.
Over the next few years, the authority also took over Edinburgh Airport (in 1971), Glasgow Airport (in 1975), and Aberdeen Airport (in 1975).
Becoming a Private Company
In 1986, the government decided to sell the British Airports Authority. This was part of a plan by the government to privatise many state-owned businesses. The company became BAA plc and was listed on the stock market. This allowed people to buy shares in the company.
In the early 1990s, BAA plc sold Prestwick International Airport.
Growing and Being Bought Out
BAA started to manage airport shops in other countries. In 1991, they won a contract to manage retail at Pittsburgh International Airport in the USA. In 2005, BAA also bought a large part of Budapest Ferihegy International Airport in Hungary.
In 2006, a group of companies led by Ferrovial bought BAA. This deal was worth a lot of money, about £10.1 billion. After this, BAA was no longer listed on the London Stock Exchange. The company then sold its share in Budapest Airport in 2007.
BAA also managed retail at other US airports, like Boston Logan International Airport and Baltimore-Washington International Airport. They even managed Indianapolis International Airport. However, they later sold off their US operations in 2010.
Selling Off Airports
In 2009, the UK Competition Commission looked into BAA's business. They found that BAA had too much control over airports in London and Scotland. To create more competition, BAA was told to sell three of its seven UK airports. These were Gatwick, Stansted, and either Glasgow or Edinburgh airports.
BAA decided to sell Gatwick Airport in 2009. It was sold to a company called Global Infrastructure Partners for £1.51 billion. This company also runs London City Airport.
In 2012, BAA announced that Edinburgh Airport would also be sold. It was bought by Global Infrastructure Partners later that year. After selling Edinburgh, the company changed its name to Heathrow Airport Holdings Limited. This showed that Heathrow was now its main focus.
In 2013, Stansted Airport was sold to the Manchester Airports Group. This group is owned by the local councils in Greater Manchester.
In 2014, Heathrow Airport Holdings sold Glasgow Airport, Southampton Airport, and Aberdeen Airport. These airports were sold to AGS Airports, a group that includes Ferrovial. This sale meant that Heathrow Airport Holdings would now focus almost entirely on Heathrow Airport.
Challenges During COVID-19
In 2020, during the COVID-19 pandemic, air travel dropped a lot. This caused big problems for the company. Heathrow Airport Holdings ended up with over £17 billion in debt. They asked to increase airport charges, but the Civil Aviation Authority said no.
Senior Leadership
List of Chief Executives
- Jeremy Marshall (1987–1989)
- Sir John Egan (1990–1999)
- Mike 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 that the letters didn't stand for anything specific. However, many people still thought of it as the "British Airports Authority." It's important not to confuse BAA with BA, which is short for British Airways.
The company's old logo had three green triangles. It was designed in 1986 when the company became private.
In 2012, the company changed its name to Heathrow Airport Holdings. The Chief Executive, Colin Matthews, explained that the old BAA name didn't fit anymore. This was because the company now owned fewer airports, and Heathrow Airport made up 95% of its business. Each airport the company still owned started using its own name instead of the BAA name.
Who Owns the Company?
Heathrow Airport Holdings is owned by several different companies and investment groups. Here's a look at some of the main owners:
| Owner | Shares |
|---|---|
| Ferrovial | 25% |
| Qatar Investment Authority | 20% |
| Caisse de dépôt et placement du Québec | 12.62% |
| GIC | 11.20% |
| Australian Retirement Trust | 11.18% |
| China Investment Corporation | 10% |
| Universities Superannuation Scheme | 10% |
Company Headquarters
The company's main office is at the Compass Centre. This building is located on the grounds of Heathrow Airport in Hounslow. The Compass Centre used to be a place where British Airways flight crews would check in. When Heathrow Terminal 5 opened in 2008, British Airways staff moved there.
The original BAA plc head office was in central London, near London Victoria station.
Flying Matters Group
BAA was one of the first members of a group called Flying Matters. This group started in 2007. It brought together businesses, unions, and tourism groups. Their goal was to talk about how aviation affects climate change. They argued that flying does not cause a lot of climate change. They also said that more flights would help developing countries and the UK economy. However, the group was closed in 2011 after BAA and other members left.
Plans for Heathrow Airport
Since 2009, the company has been working on a plan to build a third runway at Heathrow Airport. This big project needs approval from the government. In 2018, the government approved the idea, and Parliament was set to vote on it. The company still needs to figure out how to pay for this huge expansion.
Current Operations
Airports Owned and Operated
Rail Services
- Heathrow Express (This train service is run with Great Western Railway.)
Previous Operations
Airports Previously Owned and Operated
- Aberdeen Airport (sold in December 2014)
- Edinburgh Airport (sold in April 2012)
- Gatwick Airport (sold in December 2009)
- Glasgow Airport (sold in December 2014)
- Glasgow Prestwick Airport (sold in 1992)
- Naples International Airport (a 65% share was sold in 2010)
- Southampton Airport (sold in December 2014)
- Stansted Airport (sold in February 2013)
Airports Previously Managed
- Baltimore-Washington International Airport (only managed the shops)
- Boston Logan International Airport (only managed the shops)
- Indianapolis International Airport
- Pittsburgh International Airport (only managed the shops)
- Sir Seewoosagur Ramgoolam International Airport
Previous Rail Services
- Heathrow Connect (This service was run with First Great Western. It was replaced by TfL Rail in 2018.)
Previous Retail Business
- World Duty Free (This company used to run all of BAA's airport shops. It was sold in 2008.)
See also
- List of companies based in London
