BAA USA
{{short description|Former American airports subsidiary}}
{{use mdy dates|date=July 2024}}
{{Infobox company
| name = BAA USA
| logo = File:BAA USA Logo.svg
| logo_caption = BAA logo
| logo_alt =
| type = Subsidiary
| industry = Aviation
| predecessor =
| successor =
| founded = {{start date and age|1992}}
| founder =
| defunct = {{end date and age|2010}}
| fate = Bought out
| hq_location_city = Pittsburgh
| hq_location_country = United States
| area_served =
| key_people =
| products = AirMall
| owner =
| num_employees =
| num_employees_year =
| parent = BAA
| website =
}}
BAA USA, also referred to as just BAA in the United States, was an American airports subsidiary owned by the British airports operator BAA. At its peak, BAA USA owned AirMall as well as the airside shopping outlets and management contracts for several American airports.{{cite web|url=https://www.nytimes.com/1992/11/08/business/for-pittsburgh-a-model-airport-at-an-immodest-price.html |title=For Pittsburgh, a Model Airport at an Immodest Price |work=The New York Times |url-access=subscription |date=1992-11-08 |access-date=2021-03-11}} It was set up in 1992 and operated each airport under a subsidiary company with BAA affixed to the name of the city. It was bought out by Prospect Capital Corporation in 2010 who renamed it AirMall USA as part of a BAA asset stripping policy.{{cite web |url=https://www.prnewswire.com/news-releases/baa-usa-acquired-by-new-owners-to-be-renamed-airmall-usa-99758559.html |title=BAA USA acquired by new owners, to be renamed AirMall USA |publisher=PR Newswire |date=2010-04-02 |access-date=2021-03-11}}
History
BAA was a privatised company created from the British Airports Authority government department. Though they were a private company, they were regulated by the Airports Act 1986 which put restrictions on the amount BAA could charge in the United Kingdom for airport services.{{cite web|url=http://faculty.london.edu/cvoss/baa/html/frameset_page14.htm |title=The Creation of the Airmall |publisher=Faculty.london.edu |date= |access-date=2021-03-11}} BAA USA was set up as a way for BAA to gain income without limitations.
In 1992, they outbid four American contractors to win the right to run the retail outlets at Pittsburgh International Airport, which they did under a brand called AirMall. They implemented a rule stating that the shops airside could not charge more for a product than they charged outside the airport. They also located their headquarters at Pittsburgh Airport. In 1994, they won a management contract for Indianapolis International Airport.{{cite web|url=https://www.independent.co.uk/news/business/baa-close-to-clinching-breakthrough-in-us-1619304.html |title=BAA close to clinching breakthrough in US |work=The Independent |date= 12 May 1995|access-date=2021-03-11}} In 1995, they made a $66 million profit.{{cite web|first=Michael |last=Bell |url=https://www.manhattan-institute.org/html/it-time-let-private-sector-run-our-airports-5596.html |title=Is it Time to Let the Private Sector Run Our Airports? |publisher=Manhattan Institute |date=1996-04-01 |access-date=2021-03-11}} In 1997, they took over management of Harrisburg International Airport.{{cite web|author=06 June 2006 • 00:01 am |url=https://www.telegraph.co.uk/finance/2940422/BAA-through-the-decades.html |title=BAA through the decades |work=Telegraph |url-access=subscription |date=2006-06-06 |access-date=2021-03-11}} In 1998 they also signed a management contract with Newark International Airport{{cite web|url=https://www.nytimes.com/2001/01/12/nyregion/mayor-faults-port-authority-for-ending-a-contract.html |title=Mayor Faults Port Authority For Ending A Contract |work=The New York Times |url-access=subscription |date=2001-01-12 |access-date=2021-03-11}} and a concessions one with Logan International Airport in 2000.{{cite web|url=http://www.massport.com/massport/media/newsroom/massport-to-upgrade-customer-conveniences-at-logan-baa-to-bring-world-class-restaurants-and-shops-to-terminals/ |title=Massport to Upgrade Customer Conveniences at Logan; BAA To Bring World-Class Restaurants and Shops to Terminals |publisher=Massport |date=2000-07-05 |access-date=2021-03-11}}
New York and final years
In 2000, as part of a long-running dispute between the Port Authority of New York and New Jersey and New York City, the Mayor of New York City Rudy Giuliani threatened to award BAA USA the management contracts for John F. Kennedy International Airport and LaGuardia Airport with the intended view that BAA USA would eventually buy the airports.{{cite web|url=https://www.nytimes.com/2000/05/05/nyregion/new-york-threatens-to-hand-over-its-airports-to-british-company.html |title=New York Threatens to Hand Over Its Airports to British Company |url-access=subscription |work=The New York Times |date=2000-05-05 |access-date=2021-03-11}} Giuliani eventually did award the contracts to BAA USA.{{cite web|url=http://www.nyc.gov/html/om/html/2000a/pr159-00.html |title=MAYOR GIULIANI ANNOUNCES NEGOTIATIONS WITH POTENTIAL NEW MANAGER OF CITY AIRPORTS |publisher=Government of New York City |date=2000-05-04 |access-date=2021-03-11}} In response, the Port Authority cancelled BAA USA's contract with Newark, which Mayor Giuliani accused of being a "vindictive" move. In 2001, BAA USA's contract with Harrisburg Airport was terminated by the Susquehanna Area Regional Airport Authority due to failing to provide workers' compensation and failing to meet promised targets.{{cite web|last=Newman |first=Philip |url=https://qns.com/2001/07/mayors-airport-pick-sues-over-firing-in-pa/ |title=Mayor's airport pick sues over firing in PA |publisher=QNS |date=2001-07-11 |access-date=2021-03-11}} BAA USA sued over this and despite an injunction being denied, it was settled out of court with BAA USA being given $650,000 in compensation.{{cite web|url=https://www.newspapers.com/image/344016221/?terms=%22baa%20harrisburg%22%20lawsuit&match=1 |title=Management law suit settled |work=The Sentinel |via=Newspapers.com |url-access=subscription |date=2001-12-20 |access-date=2021-03-11}} All BAA USA employees at Harrisburg were retained except for the director.{{cite web|url=https://www.newspapers.com/image/555724426/?terms=%22baa%20harrisburg%22%20director&match=1 |title=Airport authority terminates management deal with BAA |work=York Daily Record |via=Newspapers.com |url-access=subscription |date=2001-07-03 |access-date=2021-03-11}} The plans to take over the New York airports also fell through after Giuliani's successor as Mayor, Michael Bloomberg signed an extension to the Port Authority's lease.{{cite web |first=Dan |last=Elliott |url=https://www.frontier-economics.com/es/es/noticias-y-publicaciones/publicaciones/article-i6391-coming-down-to-earth/ |title=Coming down to earth |publisher=Frontier Economics |access-date=2021-03-11}}{{cite book |first=Janet |last=Bednarek |title=Airports, Cities and the Jet Age: US Airports since 1945 |pages=58–59 |publisher=Springer |year=2016 |isbn=978-3319311951}}
In 2005, they ran Baltimore/Washington International Airport{{cite magazine|url=https://www.dfnionline.com/latest-news/retail/baa-maryland-unveils-new-baltimore-washington-offer-14-07-2005/ |title=BAA Maryland unveils new Baltimore-Washington offer |magazine=DFNI Magazine |date=2005-07-14 |access-date=2021-03-11 |archive-url=https://web.archive.org/web/20210419070600/https://www.dfnionline.com/latest-news/retail/baa-maryland-unveils-new-baltimore-washington-offer-14-07-2005/ |archive-date=2021-04-19 |url-status=live}} after winning the contract to run the concessions.{{cite web|url=https://marylandreporter.com/2014/03/14/union-protesters-arrested-at-state-house/ |title=Union protesters arrested at State House |publisher=Maryland Reporter |date=2014-03-14 |access-date=2021-03-11}} In 2008, BAA USA won the concessions contract for Cleveland Airport under their AirMall brand.{{cite web |url=https://www.prnewswire.com/news-releases/airmall-ushers-in-new-chapter-enhanced-passenger-experience-at-cleveland-hopkins-international-airport-with-grand-opening-98752294.html |title=AIRMALL Ushers in New Chapter, Enhanced Passenger Experience at Cleveland Hopkins International Airport With Grand Opening |publisher=PR Newswire |date=2010-07-19 |access-date=2021-03-11}}{{cite web|url=https://www.businesswire.com/news/home/20090129006293/en/BAA-Cleveland-Begins-Management-of-Food-and-Beverage-Concessions-at-Cleveland-Hopkins-International-Airport-Launches-AIRMALL%25C2%25AE-Transformation |title=BAA Cleveland Begins Management of Food and Beverage Concessions at Cleveland Hopkins International Airport, Launches AIRMALL® Transformation | Business Wire |publisher=Business Wire |via=Google |date=2009-01-29 |access-date=2021-03-11}} However, later in the year, BAA had announced a plan to sell off "non-core assets" following a British Competition Commission ruling that BAA had to sell some of their British airports.{{cite news|url=https://www.ft.com/content/f3a0b418-14af-11de-8cd1-0000779fd2ac |title=Ferrovial resigned to divestiture |url-access=subscription |publisher=Financial Times |date= |access-date=2021-03-11}}{{cite news |url=https://www.reuters.com/article/baa-property/baa-agrees-partial-sale-of-property-unit-idUSL2144618420080321 |title=BAA agrees partial sale of property unit |publisher=Reuters |date=2008-03-21 |access-date=2021-03-11}} By 2010, it was announced that BAA USA had been sold for $50 million to Prospect Capital Corporation who announced they would rename BAA USA to AirMall USA.{{cite web|url=https://mediacentre.heathrow.com/pressrelease/details/81/Corporate-operational-24/3778 |title=BAA announces sale of US retail contracts |publisher=Heathrow Airport Holdings |date=2010-07-31 |access-date=2021-03-11}}
References
{{Reflist}}
Category:Airport operators of the United States
Category:American companies established in 1992
Category:American companies disestablished in 2010
Category:Heathrow Airport Holdings
Category:American subsidiaries of foreign companies
Category:Pittsburgh International Airport
Category:Logan International Airport
Category:Baltimore/Washington International Airport
Category:Newark Liberty International Airport