JCDecaux and BAA terminate £500m airport deal

LONDON - Outdoor media owner JCDecaux and BAA, the owner of Heathrow and Gatwick, are to terminate their £500m pan-airport ad contract in April 2010, seven years ahead of schedule.

JCDecaux Airport: pan-airport deal with BAA terminated
JCDecaux Airport: pan-airport deal with BAA terminated

The announcement follows the final decision from the Competition Commission in March, which concluded BAA had to sell Gatwick and Stansted, as well either its Glasgow or Edinburgh airport.

In a joint statement, the companies said the move would give both organisations an opportunity to restructure their businesses to reflect BAA's new airport portfolio.

JCDecaux won the seven-year BAA contact, which has an option to extend the relationship for a further three years, for BAA's seven UK airports and the Heathrow Express in May 2006.

At the time, BAA said it expected the contract to generate ad revenue in excess of £500m if it ran until 2017.

It is expected the ad contracts for outdoor advertising in BAA airports, which include Heathrow, Gatwick, Stansted, Glasgow, Edinburgh, Aberdeen and Southampton, will now be decided on an airport-by-airport basis.

Julie France, managing director for JCDecaux Airport, said she expected JCDecaux Airport's relationship with BAA "to continue and develop to reflect BAA's changing organisation".

France confirmed JCDecaux Airport would be interested in retaining the ad contracts for the airports sold by BAA but she said any bids would depend on individual tender documents which are "difficult to predict".

The BAA contract forms a significant part of the JCDecaux Airport business. JCDecaux Airport currently manages 11 air and rail concessions: alongside BAA it manages the contract for London Luton, the Eurotunnel and the Gatwick Express

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