BAA in Newark pull-out, but continues JFK and La Guardia talks

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BAA is pulling out of its 15-year management and development contract at Newark International airport next month, following talks with landlord the Port Authority of New York and New Jersey. In a statement, BAA said it accepted "the termination without cause of the retail contract at Newark International airport terminals A and B".

Last year, BAA was forced to give up its retail management contract at New York JFK terminal seven, the British Airways (BA) terminal, following a dispute with the Port Authority (see DFNI 11). BAA subsidiary World Duty Free continues to operate there, while the sub-leases negotiated by BAA for other retail outlets were transferred to BA.

The Port Authority has itself been in dispute with the City of New York and Mayor Giuliani over its airport operating lease, which expires in 2015. The mayor's administration has said it may try to oust the Authority and replace it with a new operator, possibly BAA.

Commenting, BAA said its negotiations with the City of New York for a long-term consultancy and management contract involving New York's JFK and La Guardia airports were "at an advanced stage."