BAA Struggling To Pay For Security Costs

BAA the owner of Stansted, Gatwick and Heathrow Airports has released figures indicating that it is struggling to pay for security costs. Due to the rise in costs of the airport security BAA have announced a loss in the first quarter of the year despite passenger numbers increasing at a healthy level.

The news comes at a bad time for BAA as their owners Ferrovial is currently attempting to re-finance some of its loans as it still remains £10 billion in debt. BAA has had to lower the value of some of its properties at the three airports that totals a loss of £97 million. Due to this the profits for the first quarter of this year were £89 million that has then translated into a £62 million loss from the beginning of January to the end of March this year.

The end of 2007 saw BAA hire more that 2,200 extra security staff as part of regulatory requirements that aided the cutting of queues and enhancing security for passengers. Other costs have had to be factored into the equation such as a £20 million price tag for Heathrow Terminals 1 and 2 when British Airways moved to terminal 5as well as £34 million being spent on preparing Terminal 5 for its opening that turned out to be a fiasco.

Published by: Jon Vickery