BAA RESPONSE TO CAA FINAL DECISION ON AIRPORT CHARGES             

BAA plc, the international airports group, today welcomed the final decision on
the price control formula at Heathrow, Gatwick and Stansted for the next five
years.

BAA chief executive designate Mike Clasper said: "As expected, the final
formula is tough but realistic. It removes a significant uncertainty for the
whole UK aviation industry.

"It will enable us to proceed with our ten year, �7.5 billion investment
programme to deliver infrastructure improvements at all three London airports.
The investment programme is designed to meet our airline customers'
requirements and will ensure we are providing the high quality infrastructure
the country needs.

"We are already hard at work on the Heathrow Terminal 5 site and we are on
track to deliver a state-of-the-art terminal on time and to budget in 2008.

"The CAA decision also endorses the company's business plan, which is committed
to providing high quality of service for passengers and airlines up to the
opening of Terminal 5 and beyond.

"We are pleased that a rigorous and thorough review at a critical time for the
aviation industry has produced an outcome which enables us to deliver what the
industry needs. The regulatory system in the aviation industry has demonstrated
that it works effectively.

"Although the CAA has not fully accepted our arguments on the recovery of
security costs, we welcome the technical amendments which go some way towards
capping our cost exposure if additional security measures were required. As
ever, passengers can be assured that we will continue to do everything
necessary to ensure their security."

The final formula provides for an RPI + 6.5% increase in charges at Heathrow,
equivalent to a real average annual increase of approximately 45 pence per
passenger. The increase in Gatwick and Stansted charges will be capped at the
rate of inflation (RPI + 0).



END