The document outlines the commercial challenges and business objectives facing BAA. It discusses delivering core services, continuing growth through expansion and new developments, financing and delivering projects on time and on budget, satisfying stakeholders through community engagement and providing value, reducing borrowing by increasing revenue and traffic, and investing in security technologies and training. The presentation aims to enable BAA to improve customer service and support innovation while meeting these objectives.

1. Presentation to BAAPresentation to BAA
OnOn
“Future Major Commercial“Future Major Commercial
Challenges & Route To Meeting TheChallenges & Route To Meeting The
Business Objectives.”Business Objectives.”
By David AnstissBy David Anstiss
2121stst
October 2005October 2005

2. • Deliver Core ServicesDeliver Core Services
• Continuing GrowthContinuing Growth
• Finance & Deliver ProjectsFinance & Deliver Projects
• Satisfy StakeholdersSatisfy Stakeholders
• Reduce BorrowingReduce Borrowing
• Investing In SecurityInvesting In Security
BAABAA
“Commercial Challenges & Business Objectives.”“Commercial Challenges & Business Objectives.”

3. BAABAA
“Commercial Challenges & Business Objectives.”“Commercial Challenges & Business Objectives.”
• Deliver Core ServicesDeliver Core Services
Optimize the balance between the requirements ofOptimize the balance between the requirements of
the airlines, the Regulatory Authority and thethe airlines, the Regulatory Authority and the
passengers needs. Maximize the opportunities forpassengers needs. Maximize the opportunities for
London airports within the financial capped period.London airports within the financial capped period.
• Continuing GrowthContinuing Growth
Extend airports with new runways, refurbishmentExtend airports with new runways, refurbishment
and new terminal developments and increaseand new terminal developments and increase
capacity. New and innovative retail developments.capacity. New and innovative retail developments.
Opening-up of airports for the new Airbus A380Opening-up of airports for the new Airbus A380
Super-Jumbo. Encourage other airlines to beSuper-Jumbo. Encourage other airlines to be
business partners. Purchase new airports to increasebusiness partners. Purchase new airports to increase
portfolio.portfolio.

4. BAABAA
“Commercial Challenges & Business Objectives.”“Commercial Challenges & Business Objectives.”
• Finance and Deliver ProjectsFinance and Deliver Projects
Use and develop property portfolio assetsUse and develop property portfolio assets
efficiently so the capital projects are suppliedefficiently so the capital projects are supplied
on schedule and on budget. Control supplyon schedule and on budget. Control supply
chain management with just in time deliveries.chain management with just in time deliveries.
Close relationships with suppliers andClose relationships with suppliers and
contractors, key players within the design team.contractors, key players within the design team.
• Satisfy StakeholdersSatisfy Stakeholders
Responsible neighbour to local community,Responsible neighbour to local community,
adding value for shareholders, value for moneyadding value for shareholders, value for money
to customers, the best work place environmentto customers, the best work place environment
for employees and accountability andfor employees and accountability and
innovation for business partners.innovation for business partners.

5. BAABAA
“Commercial Challenges & Business Objectives.”“Commercial Challenges & Business Objectives.”
• Reduce LiabilitiesReduce Liabilities
Maximize the property portfolio and experience ofMaximize the property portfolio and experience of
Morley Fund Management. Deliver capitalMorley Fund Management. Deliver capital
investment plans within budget. Increase passengerinvestment plans within budget. Increase passenger
traffic year on year. Do the right things at the righttraffic year on year. Do the right things at the right
cost.cost.
• Security InvestmentSecurity Investment
Continue to develop training and invest in cuttingContinue to develop training and invest in cutting
edge technology for premium check-in andedge technology for premium check-in and
frontline security screening.frontline security screening.

6. BAABAA
“Commercial Challenges & Business Objectives.”“Commercial Challenges & Business Objectives.”
Although the Framework for Growth can be seen as adding significantly to theAlthough the Framework for Growth can be seen as adding significantly to the
commercial challenges facing BAA, however, with passenger traffic up in 2004/05commercial challenges facing BAA, however, with passenger traffic up in 2004/05
by 6.3% and revenues up by 7.4%. The continuing investment in runways, new andby 6.3% and revenues up by 7.4%. The continuing investment in runways, new and
refurbished terminals and focused retail developments this will enable BAA torefurbished terminals and focused retail developments this will enable BAA to
improve customer service and support innovation and operational performance.improve customer service and support innovation and operational performance.
To SummariseTo Summarise
Deliver Core ServicesDeliver Core Services
Continuing GrowthContinuing Growth
Finance & Deliver ProjectsFinance & Deliver Projects
Satisfy StakeholdersSatisfy Stakeholders
Reduce BorrowingReduce Borrowing
Investing In SecurityInvesting In Security

7. BAABAA
“Commercial Challenges & Business Objectives.”“Commercial Challenges & Business Objectives.”
THANKYOUTHANKYOU