airports operator BAA has outlined plans for capital investment of around £9.3
billion ($18.6 billion) over the next 11 years at its three London airports of Heathrow, Gatwick and Stansted.
capital investment plan was outlined today alongside an 11 year traffic
forecast estimating average annual traffic growth of 2.8% across the three
growth is driven by Stansted – which runs ahead of
that at Gatwick and Heathrow – and is envisaged overtaking Gatwick as London’s
second busiest airport after a traffic growth spike in 2015 with the opening of
its second runway and terminal.
Stansted Generation 2 is one of several major airport
infrastructure projects to be undertaken as part of the £9.3 billion capital
total nearly £2.1 billion is earmarked for expansion at Stansted,
but the lion’s share of investment - £6.2 billion - will be at Heathrow. Projects
include its replacement for Heathrow terminal 2 – Heathrow East; the renovation
of Heathrow terminals 3 and 4; and a second satellite for terminal 5. A further
£939 million will be invested at Gatwick.
CEO Stephen Nelson says: “The size and strength of BAA's
balance sheet and our unrivalled experience in developing new airport
facilities, give us great confidence that we can deliver this scale of
investment on time and on budget.
now look to the regulatory authorities to deliver the stable regulatory system
and sensible financial incentives necessary to deliver these plans”
BAA’s position has been under scrutiny and last month UK consumer
protection body, the Office of Fair Trading, referred its study into BAA and
the airports market to the UK Competition Commission.