BAA needs to sell one of its airports to cater to regulators as well as its alarming debt situation
Now for the bad part. With BAA, Grupo Ferrovial has also taken up debt amounting to a whopping $20 .2 billion. “According to me, Ferrovial, being a private company has no prospect of a rights issue. So, they will just have to keep selling off their non-core assets but there are not many of these remaining,” comments David Bentley, MD, DJB Associates, UK. Recently, Grupo Ferrovial sold World Duty Free, to Italian retailer Autogrill for $1.1 billion, which has surely helped.
Selling off one airport could handle both issues for BAA. But the question is which one? The departure of an airport like Gatwick (the busiest single runway airport in the world) wouldn’t make much of a difference to the debt situation, as a legal clause prevents another runway to be built on it till 2019. And in the case of an airport like Heathrow, selling it would be tough, as it becomes a politically sensitive issue. Clearly, from here, Grupo Ferrovial has to play its cards right.
Now for the bad part. With BAA, Grupo Ferrovial has also taken up debt amounting to a whopping $20 .2 billion. “According to me, Ferrovial, being a private company has no prospect of a rights issue. So, they will just have to keep selling off their non-core assets but there are not many of these remaining,” comments David Bentley, MD, DJB Associates, UK. Recently, Grupo Ferrovial sold World Duty Free, to Italian retailer Autogrill for $1.1 billion, which has surely helped.
Selling off one airport could handle both issues for BAA. But the question is which one? The departure of an airport like Gatwick (the busiest single runway airport in the world) wouldn’t make much of a difference to the debt situation, as a legal clause prevents another runway to be built on it till 2019. And in the case of an airport like Heathrow, selling it would be tough, as it becomes a politically sensitive issue. Clearly, from here, Grupo Ferrovial has to play its cards right.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
