Eurotunnel and BAA settle out of Court

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Eurotunnel has reached an out-of-court settlement with BAA over claims by the airports operator that the cross-Channel company had misrepresented the business potential of its retail stores.

A High Court hearing in London was due this month after BAA initiated legal proceedings last June to recover £10.3m ($15.6m) in losses since taking over the 15-year management contract from Aer Rianta International in July 1999. In its legal action, BAA wanted to rescind the contract.

The master franchise deal involved BAA operating Eurotunnel's retail outlets at Folkestone and Calais/Coquelles and covered all specialist shops, catering outlets as well as managing tenants at each terminal through retail subsidiary World Duty Free. BAA confirmed an out of court settlement had been reached with Eurotunnel, but refused to disclose further details.

Travelretailworld.com will provide further details, including the future of Eurotunnel's retail offer, as they become available.