Airport operator BAA names new CEO
Troubled airport operator BAA, which owns Heathrow, Gatwick and Stansted airport, has replaced chief executive Stephen Nelson after less than two years in the job.
His successor has been named as Colin Matthews, formerly CEO of Severn Trent plc and director of technical operations at British Airways.
BAA has said the change has been made at a time when the company “moves into the next phase of its development as a company dedicated to transforming Britain’s airports”.
Stephen Nelson was a marketing director and board member at J Sainsbury, but his retail experience led to criticisms that BAA was more interested in operating profitable shops than running a successful airport.
Paying tribute to Nelson, BAA chairman Sir Nigel Rudd said: “Based on his extensive experience in the retail industry, Stephen put serving the customer, the passenger, first on BAA’s list of priorities. That, and the successful completion of Terminal 5, will be his lasting legacy to this company”.
Looking to the future, Rudd added: “But BAA is now entering a new era, in which we have to not only complete the transformation of our airports that T5 has begun, but also meet the new demands for quality service and environmental responsibility. This is also a period in which BAA will be to the fore in arguing for a new regulatory framework which recognises those priorities. Colin Matthews has the right background and experience to take BAA into that new era.”
BAA currently has around £10 billion of debt and is hoping to sell retailer World Duty Free for £400 million. It is also looking to sell its property arm in the Spring. But a new investor may be needed to help reduce its debt.
If more money is not found there is concern that standards at BAA’s seven UK airports could fall further, and that building projects such as the renovation of Terminals 1 and 2 at Heathrow may not be completed in time for the 2012 Olympics in London.
Written by: Nick Purdom
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