BAA REAFFIRMS �8.4 BILLION AIRPORT INVESTMENT PROGRAMME            

BAA plc, the world's leading airport company today issues its �8.4 billion
London airports' capital investment programme (at current prices) for the 11
year period, 2003/04 to 2013/14, for consultation with its airline partners.
The plans are designed to increase the capacity and quality of the three
regulated London airports' facilities and build the fifth terminal for
Heathrow.

BAA has permission to increase capacity at Heathrow and Gatwick and in the last
year gained permission to grow Stansted. Annual passenger numbers for the next
11 years, are forecast to grow from 109.3 million today, to 157.6 million in
2013/14. The Gulf War and SARS are not expected to cause any significant medium
to long term changes in traffic forecasts.

The programme is designed to provide quality facilities to accommodate this
growth and comprises an investment of �6.6 billion at Heathrow, to include �3.2
billion on Terminal 5 and �3.4 billion on improvements to the existing
terminals; �1 billion at Gatwick, to take the airport up to around 42 million
passengers per annum, within the existing two terminal and one runway
configuration; and around �800 million at Stansted, to develop the airport to
around 25 million passengers per annum.

Commenting on the programme, BAA's chief executive designate Mike Clasper said;
"We are fulfilling our promise to invest heavily in the quality and capacity of
our airports for our passengers and airline partners, establishing the
airlines' priorities through this consultation. We are fully delivering on the
commitments we made during our regulatory review. We are already hard at work
on the Heathrow Terminal 5 site and are on track to deliver a state-of-the-art
terminal on time and to budget in 2008."

Examples of the main investments:

Heathrow

  * Around �3.2 billion on Terminal 5 and associated transport links, with
    Phase One opening in Spring 2008.
   
  * Around �1.2 billion in the central terminal area and Terminal 4 to include
    accommodating airline alliances in the central Terminal area, integration
    with Terminal 5 airside road tunnel connecting the central terminal area to
    some remote stands.
   
  * Around �245 million investment in Terminal 1 `Future Concepts', to adapt
    Terminal 1 to handle long haul flights, including an extension, and
    terminal and pier developments.
   
  * Up to around �600 million investment in the A380; adapting Heathrow to
    handle the new super jumbo, to include pier reconfigurations, runway and
    taxiway upgrades, larger stands and terminal upgrades.
   
  * Around �580 million in baggage handling improvements.
   
Gatwick

  * BAA is investing �1 billion on the progressive build out of Gatwick to the
    full capacity of the existing runway, around 42 million passengers per
    annum, the timing and specification of which will be dependent on the
    evolving traffic mix.
   
  * Work includes the early completion of the �68 million Pier 6 to improve
    pier service in North Terminal.
   
  * Around �23 million to extend South Terminal arrivals.
   
  * Around �90 million for segregating arriving and departing passengers for
    improved security.
   
Stansted

  * �800 million over the next 11 years to continue developing the airport to
    handle 25 million passengers a year. This investment includes terminal
    enhancements, apron and taxiway enhancements, a stand by runway for
    emergency use only and a public transport interchange.
   
                For more information on BAA plc see www.baa.com                

Long term traffic forecasts 2003/04 - 2013/14

  Passengers       Heathrow         Gatwick        Stansted       Total South  
                                                                               
  per annum,                                                         East      
                                                                               
   millions                                                                    
                                                                               
    2002/03          63.0            29.6            16.7            109.3     
   (Actual)                                                                    
                                                                               
    2003/04          65.5            30.7            18.0            114.2     
                                                                               
    2004/05          67.0            32.8            19.8            119.6     
                                                                               
    2005/06          68.5            34.4            21.2            124.1     
                                                                               
    2006/07          70.5            35.8            22.0            128.3     
                                                                               
    2007/08          72.0            37.3            22.7            132.0     
                                                                               
    2008/09          75.5            38.3            23.4            137.2     
                                                                               
    2009/10          79.0            39.2            24.3            142.5     
                                                                               
    2010/11          81.0            40.0            25.2            146.2     
                                                                               
    2011/12          83.0            40.8            26.2            150.0     
                                                                               
    2012/13          85.0            41.5            27.2            153.7     
                                                                               
    2013/14          87.0            42.2            28.4            157.6     

BAA Capital Investment Programme 2003

   �M (2003        Heathrow         Gatwick        Stansted       Total South  
                                                                               
    prices)                                                          East      
                                                                               
    2003/04          897.1           106.5           39.1           1,042.7    
                                                                               
    2004/05          942.5           110.3           79.0           1,131.8    
                                                                               
    2005/06          966.6           82.7            70.3           1,119.6    
                                                                               
    2006/07          769.4           104.1           84.6            958.1     
                                                                               
    2007/08          801.1           149.1           85.6           1,035.8    
                                                                               
    2008/09          462.3           125.0           94.3            681.6     
                                                                               
    2009/10          490.9           95.5            65.5            651.9     
                                                                               
    2010/11          436.7           95.9            68.5            601.1     
                                                                               
    2011/12          287.5           58.8            95.8            442.1     
                                                                               
    2012/13          265.4           51.1            63.9            380.4     
                                                                               
    2013/14          300.0           50.0            40.0            390.0     
                                                                               
     TOTAL          6,619.5         1,029.0          786.6          8,435.1    



END