BAA Comments On Opening of Regulatory Review

Business Wire, July 14, 2000

Business Editors

LONDON--(BUSINESS WIRE)--July 14, 2000

BAA plc, the UK-based airport company, today welcomed the publication by the Civil Aviation Authority (CAA) of its consultative paper seeking views on the issues to be considered in the regulatory review of London and Manchester airports.

Commenting on the paper, BAA Chief Executive Mike Hodgkinson said: "The CAA's consultative paper offers the aviation industry an excellent opportunity to review the issues relating to the regulation of airports in the best interests of the industry and above all in the national interest. It is a wide ranging paper, well beyond the narrow confines of traditional regulation of privatized companies. However, this is the start of a long process, with the new regime not beginning until April 1, 2003.

"Britain's overriding priority in this review, and the overriding need of both airlines and passengers, is to create the incentives for high quality airports with sufficient capacity. BAA has shown itself able to meet this need. Our investment has developed Stansted, currently the main center for passenger traffic growth and new services in southeast England, the Heathrow Express rail link, and many other vital national infrastructure improvements. We are seeking to continue to develop capacity, while addressing environmental and other social concerns.

"Economic growth and jobs are increasingly dependent on airports as the gateways for international travel. Providing capacity requires investment. The regulatory outcome must therefore be one which encourages investment in the nation's infrastructure by attracting capital to the industry."

BAA ordinary shares trade on the London Stock Exchange; prices may be accessed on Bloomberg under the symbol BAA LN, on the Reuter Equities 2000 Service under BAA.L and on Quotron under BAANU.EU. BAA ADRs, each equal to one ordinary share, appear on the pink sheets under BAAPY. Additional information is available on BAA's home page: http://www.baa.co.uk.