Joe Bolger
Attend an evening with Andre Agassi
BAA, Britain’s largest airports operator, moved yesterday to counter mounting criticism from politicians and passengers with the appointment of Sir Nigel Rudd as its new chairman.
The Heathrow operator has also appointed Lord Stevens of Kirkwhelpington, the former Commissioner of the Metropolitan Police, to bolster its board. The appointments come after weeks of negative publicity for the group, which owns six other UK airports, including Gatwick and Stansted.
They also come ahead of a crucial regulatory ruling, expected this month, when the airports group will learn how much it can charge airlines using Heathrow and Gatwick airports.
The outcome of the ruling could determine how much BAA is willing to invest in those airports to improve the experience for customers. BAA said that the appointment of Sir Nigel, the former Boots chairman and a serial nonexecutive director, and Lord Stevens was part of a programme to make sure it has the “requisite expertise” to deal with ongoing regulatory reviews and demands to improve customer service.
It is understood the company hopes to improve relations with the Government and regulators with the appointment of independent directors.
“We need to transform Britain’s biggest airports throughout the coming years,” Sir Nigel said. “I believe it can be done and I am determined to get the results our passengers deserve.”
Sir Nigel will succeed Rafael del Pino, Ferrovial’s chairman, who was chairing the company on an interim basis after Marcus Agius stepped down in December to chair Barclays.
Sir Nigel said yesterday that the formation of a UK board would undoubtedly help the operational performance of BAA. He said that he would ensure managers were focused on looking after customers: “If you look after the customer, all these [issues] fade away.”
Industry executives hope that he will also simplify the way in which the company operates and remove levels of bureaucracy.
Sir Nigel has earned a reputation as a dealmaker, most recently sealing the £11 billion sale of Alliance Boots to a private-equity backed group.
His dealmaking skills could prove useful were BAA to sell any of its airports. The company has faced a string of calls for its break-up, not least from airlines including British Airways and Ryanair, which want the company’s stranglehold on air travel in the South East of England loosened.
The Competition Commission is reviewing BAA’s ownership of Heathrow, Gatwick and Stansted airports arond London and of its market position in Scotland. A string of bidders are understood to be lining up to enter an auction for Gatwick, should it happen.
The two appointments further dilute the influence of Ferrovial and its partner investors on the board. Among the nine nonexecutive directors on the BAA board, seven will be executives of Ferrovial or other investors in BAA.
BAA has been criticised over the poor state of its terminals at Heathrow airport, with Ken Livingstone, the Mayor of London, claiming that the airport “shamed” Britain’s capital.
BAA has also suffered a barrage of negative coverage over delays to passengers over the busy summer season, as tightened security rules, prompted by a terror alert at Heathrow last year, increased restrictions on passengers.
The airports operator has suffered a string of senior-level departures since its purchase, in August last year, by the Ferrovial-led consortium.
This week the company said that Donal Dowds, director of safety, security and services, had decided to leave. Tony Douglas, chief executive of Heathrow Airport, and Duncan Bonfield, director of corporate affairs, have left in recent months.
Yesterday’s appointments come a day after the group appointed its first chief operating officer. Stephen Baxter, who is in charge of its Scottish airports, will play a key role in improving service to passengers.
BAA executives will be hoping that present concerns over the state of Heathrow ease early next year with the opening of Terminal 5. The new terminal, which will be used exclusively by British Airways, will clear the way for the development of another new terminal, Heathrow East, which will replace Terminals 1 and 2 in time for the London 2012 Olympic Games.
Industry sectors news at a glance. Interactive heatmap, video and podcast
Everything the Business Traveller needs to know to make a better trip
Get ready for the winter sports season, with our resort guides and snow reports
We are backing British business, what is the confidence of the nation and what businesses are succeeding?
Growing demand for energy, oil that is harder to reach and the rise of carbon dioxide emissions. We examine the energy challenge
With rail travel in Europe on the rise, we review the benefits of travelling by train
In this special section we explore new food trends to help improve your dinner party and impress guests
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
1998
£47,955
12 months for the price of 11 and a 5% discount.
Offer ends 31/11/09
Check your free Experian credit report before applying
Car Insurance
to £60K + bonus (OTE £90k)
Lord Search & Selection
Location Flexible
PwC’s Consulting practice helps businesses of all shapes
and sizes work smarter and grow faster.
£85k
CPA
Highly Competitve
Specsavers
Whiteley, near Southampton
Moments from Battersea Park.
For sale with Winkworth
Find out about shared ownership.
See your free Experian credit report beforehand
7nts - Penang £499; Borneo £699; All Inclusive £799 including flights, taxes, accommodation and private transfers
For your ultimate tailor-made ski holiday, click here
Get covered on your travels with a superb range of policies at great prices. Visit InsureandGo.com
World Class Golf, Spa and preferential Beach Club. Private estate overlooking West Coast
Villas from £275 per night inclusive of Golf
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.