BAA consortium acquires Australian airports

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A consortium comprising BAA, The Australian Infrastructure Fund (AIF) and the Utilities Trust of Australia (UTA) has acquired UK airport company TBI's equity in its Australian airport investments (excluding Hobart) for A$83m ($44m).

BAA, AIF and UTA have acquired TBI's 16.1% investment in Perth airport and its 19.9% investment in Northern Territory airports comprising Darwin, Alice Springs and Tennant Creek. BAA already operates Melbourne and Lanceston airports and will acquire a further 15% equity in Perth and 10% in the Northern Territory airports for an investment of A$70m ($37m).

TBI is replaced as technical partner by BAA who will provide management expertise covering route development, forecasting, general aviation operations, and management of the airports' retail and property development. BAA will receive a performance-related fee for consultancy services.

BAA chief executive Mike Hodgkinson said, "We have been involved in Australia since 1997. In Melbourne we have contained costs since privatisation and added significant operational efficiencies.

"To Perth and the Northern Territory airports we bring experience of the Australian market combined with global airport management expertise. In Perth we plan to improve the retail facilities and expand the property business. We will second two senior managers to provide a dedicated resource to Perth and to the Northern Territory airports."