WDF sale crucial for BAA finances, JP Morgan warns

Nicole Mezzasalma

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The sale of retail arm World Duty Free and other property could alleviate the airport authority’s financial concerns

Investment bank JP Morgan has published a note on BAA owner Grupo Ferrovial in which it warned that the UK airports group could run out of cash in the beginning of 2009. Analyst Robert Crimes said that the sale of retail arm World Duty Free and other property could help alleviate the company’s financial situation, which is caused by large investments at London Heathrow and London Gatwick airports and a high interest bill.

Crimes wrote in his report: “The disposals are important for BAA as they should moderately help alleviate BAA's liquidity issues."