Background

The BAA is a leading airport operator, which was established by the Airport Authority Act 1965, which take responsibility for three state-own airports- London Heathrow Airport, London Gatwick Airport, and London Stanste Airport. And in the following few years, the authority acquired responsibility for Glasgow Prestwick Airport, Edinburgh Airport, Souththampton Airport and Aberdeen Airport. More importantly, BAA’s two London airports, Heathrow and Stansted, have helped to make London one of the world’s best connected cities, which is important to the UK’s economic succsess.
However, In the early 1990s, the company sold Glasgow Prestwick Airport. In 2006, the company was delisted from the London Stock Exchange as it was taken over by Grupo Ferrovial, and the name of BAA plc was change to BAA Limited. And then the sale of Gatwick Airport took place in 2009 followed by Edinburgh Airport in 2012.
Currently, in October 2012, Heathrow, Glasgow, Aberdeen and Southampton airports now operate under their stand-alone brands. The company was determined to change BAA Limited to Heathrow Airport Holding Ltd as BAA no longer fits without representing all British airports and Heathrow will account for more than 95% of the business.

BAA- Income statement between 2009 and 2011(m)

| 2009￡ | 2010￡ | 2011 ￡ | Revenue | 2,210 | 2,213 | 2,414 | Other operating revenue | (83) | 52 | 49 | Cost of Goods Sold | (1,805) | (1,747) | (1,748) | depreciation | (1) | (483) | (69) | Reported EBIAT | 321 | 35 | 646 | No operating income | (8) | (811) | (852) | Special Items | (583) | 117 | (39) | Earnings before taxes | (270) | (659) | (245) | Tax credit | 109 | 226 | 215 | Minority interest | - | - | - | Net income | (161) | (433) | (30) |

BAA-Net operating profit less adjusted taxes between 2009 and 2011

| 2009￡ | 2010￡ | 2011￡ | revenue | 2,127 | 2,265 | 2,463 | Operating cost | (1,805) | (1,747) | (1,748) | depreciation | (1) | (483) | (69) | Operating profits | 321 | 35 | 646 | | | | | Tax credit | 19.12 | 229.2 | 52.81 | NOPLAT | 340.2 | 264.2 | 698.81 | | | | | After tax no operating income | (8) | (811) | (852) | Total income to all investors | 332.2 | (546.8) | (153.19) |

BAA- Balance Sheet between 2009 and 2011 (m)

| 2009￡ | 2010￡ | 2011￡ | Operating Cash | 354 | 380 | 128 | Excess Marketable security | 0 | 0 | 171 | Account receivable | 292 | 345 | 302 | Inventories | 6 | 7 | 9 | Other Current Assets | 284 | 37 | 930 | Total Current Assets | 936 | 769 | 1,540 | Net property plant and equip | 11,174 | 11,113 | 11,035 | Acquired intangible Assets | 4,145 | 3,731 | 3,301 | Other Operating assets | 223 | 132 | 105 | Investments | 2,477 | 2,654 | 2,562 | Other Non-operating Assets | 693 | 560 | 381 | Retirement Related Assets | 0 | 0 | 39 | Total Assets | 19,648 | 18,959 | 18,963 | | | | | Short term debt | 1,116 | 205 | 1080 | Accounts Payable | 545 | 495 | 549 | Tax Payable | 127 | 153 | 137 | Dividends Payable | 91 | 39 | 16 | Other Current Liabilities | 4 | 0 | 181 | Total Current Liabilities | 1,883 | 892 | 1,963 | | | | | Long term Debt | 12,280 | 12,379 | 11,626 | Deffered Income Taxes | 2,263 | 2,040 | 1,560 | Other Operating liability | 32 | 11 | 7 | Income Smoothing Provision | 504 | 779 | 1,298 | Retirement Related Liability | 278 | 67 | 29 | Total Common Equity | 2408 | 2791 | 2480 | Total Liability and Equity | 19,648 | 18,959 | 18,963 |

BAA-Invested Capital between 2009 and 2011(m)

| 2009￡ | 2010￡ | 2011￡ | Operating working capital | -349,100 | -107,200 | -182,400 | Net property plant and equip | 489,600 | 541,000 | 583,700 | Account receivable | 269,200 | 231,600 | 219,500 | Inventory | 971,900 | 972,600 | 960,900 | investments | 26,700 | 11,500 | 14,000 | Other operating assets | 427,100 | 456,200 | 494,900 | Operating current assets | 1.835,400 | 2,105,700 |