David Robertson, Business Correspondent
We've made some changes
to The Sunday Times

Stephen Nelson, the chief executive of BAA, has quit amid growing concern that the beleaguered airports operator faces severe debt problems.
BAA, which owns Heathrow and Gatwick, will confirm his departure today, sources close to the company said.
Mr Nelson has been head of the BAA for less than two years, during which time the company has come under sustained pressure for poor service and long queues at its airports.
Mr Nelson has also squeezed every penny out of the seven airports that BAA owns to pay the enormous debt that Ferrovial, the Spanish infrastructure company, took on to buy the company.
He is expected to be replaced by Colin Matthews, the former chief executive of Severn Trent.
Mr Nelson is one of several senior BAA executives to have left since Ferrovial took over the company and he leaves the group as it is forced to consider drastic measures to reduce its £10 billion debt, including a cash injection from a new investor or a sovereign wealth fund.
The company, which owns Heathrow, Gatwick and Stansted airports, wants to reduce its interest payments by refinancing the debt.
Its preferred option is to securitise income from the airports and replace about £4.7 billion of bonds.
It is also selling assets, including the retailer World Duty Free.
The credit crunch has made debt deals hard to put together and BAA has delayed refinancing by six months.
If it failed to refinance, the interest rate would rise further and the debt could be moved to junk status, making it almost impossible for the company to raise more money.
Analysts have given warning that this could lead to BAA running out of cash, potentially forcing it to stop maintenance at airports and to halt building projects, such as the renovation of Heathrow’s Terminals 1 and 2 before the 2012 Olympic Games in London.
Ferrovial has said that it can continue with its existing financing arrangements until 2011, but analysts believe that it must complete a deal within a few months or the company could be crippled.
Robert Crimes, an analyst with JPMorgan, said: “They will be forced to refinance to maintain their debt ratings, but it is going to be tough to get it done by the middle of the year.”
Alternatives to the securitisation plan are thought to include taking on new bank debt or finding someone to swap debt for equity.
BAA is advised by Royal Bank of Scotland and Citigroup: the latter received a cash injection from the Abu Dhabi sovereign wealth fund last year.
Nicolas Villen, chief financial officer of Ferrovial, admitted that it was considering alternatives to refinancing. “The capital markets are very difficult. We are working on the refinancing. We think it is possible but we have to study alternatives,” he said.
Ferrovial hopes to complete a £400 million sale of World Duty Free next month, with Dufry, the Swiss retailer, the French conglomerate Lagardère and Altadis, the Spanish tobacco group, among the bidders.
BAA also plans to sell its property arm in April.
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BAA Should be nationalised , the Spanish bank bit of more than it could chew, just shows how the big city institutions get it wrong so often and we all suffer.
BAA is a far greater piece of the countries infrastructure than Northern Rock.
What ever happens the managers will walk away with a hefty golden hand shake even after screwing it up.
Mike Pignon, Leighton Buzzard, UK
Mr Brown you are supposed to be the listening Prime Minister NOW will you listen to the people of the Heathrow Villages and admit that WE have been right all along.
I have just received another letter from your office saying you are refusing to meet us and get the same from Ruth Kelly's office. WILL YOU CHANGE YOUR MIND ?
I say again LISTEN to us NOT the airline industry.
Linda McCutcheon, SIPSON,
Funny how the government were so quick to snap up Northern Rock but when it comes to something as critical as our airports they are happy to allow it to remain in the hands of a company who clearly couldn't organise a booze up in a brewery and are up the their ears in debt.
Matthew, Epping,
BAA management and their owners deserve all the misery they get - they have imposed enough on their customers in recent years, deliberately, in an attempt to get us to spend more.
kenneth edward o'neill, Belfast, n.ireland
OMG, BAA is charging 1 GBP for a plastic bag to put liquid containers into????? Are these the same sort of bags that are handed out FREE to travellers going through security gates at US and Canadian airports? If so, I would be up in arms at being fleeced a pound for what probably costs pennies, AND for which the multitude of airport charges should very easily cover!
Ed, Toronto, Canada
Looks like even more good reasons for voiding Heathrow.
Thank goodness we can fly direct to Amsterdam with everything within walking distance.
Dave Hunter, Redcar,
Yes doesn't the ticket price include airport fees? So things like car parking and transparent bags should be included already? I think we're being double charged for corporate profit.
I don't live in London and welcome regional airports having decent services, shorter queues and more reasonable prices, without having to arrive about 3 hours ahead of flights to brave London queues and the money-grabbing departures lounge.
James, Bristol,
to saud, riyadh
I think you will find the only thing western companies worship is money so I would not describe BP as christian.
Paul, London,
Looks like a fire sale to me. We all know what the Govt should do about it - not letting the UK's key, strategic airports be owned by a foreign company would be a start - but they won't.
You can bet that one way or another, we (taxpayers and consumers) will all end up paying for this greed. It's ot a bad blag is it? Buy a company with money that you borrow and then saddle the company you've just bought with the debt to pay it of. Meanwhile, you just sit back and rake in the money.
This is happening time and time again now and it should be illegal. But the Govt just sits on its hands...........
Staphen Edwards, Wokingham, UK
to barry -london
ownership of an islamic fund is like christian BP owning oil feild in abu dhabi
so why is not ok here and ok there
saud, riyadh,
Colin Matthews would be very good for BAA. He has a strong airline background & excellent awareness of what is needed. Before Trent Water and Hays he was 'Director of Operations' at British Airways. Pehaps BAA will start listening to, and properly serving, their customers!
Mike, Heathrow, UK
Mike Bannister, Heathrow, UK
BAA should never have been privatised and even worse never sold to the Spanish group Ferrovial. If this stops the redevelopment of Terminals 1 and 2, this will be a disaster for the airport. London deserves a world class airport but I don't have high hopes that the problems at Heathrow will be sorted out anytime soon, even with the opening of terminal 5.
James, London, UK
The lack of maintenance at Heathrow is already very apparent and responsible for the many lost bags suffered by customers and airlines at the airport.
The timing of Mr Nelson resignation is interesting as T5 is due to open for business on the 27th March.
Gary , Hove, East Sussex
Aw, have BAA bitten off more than they can chew? Typical big business balls up....
paul, poole, GB
One wonders what the government will do if BAA got into bed with a a sovereign wealth fund to solve its cash crisis. The Uk's airports owned by an islamic state, now there's irony for you.
barry, London, UK
Going throught any BAA airport is a wake up call to getting ripped of UK style. Is it any wonder that brits are leaving there own country.... What are the gov doing about it.....
Sitting on there hands as usual...
John, London, UK
they paid too much and it should not have been privatised.
the uk 's approach is to sell everything of value,borrow,import people and goods, and then wonder why things are hard.
look forward to becoming full time tenants/serfs.
brain dead but educated.
some will escape but most won't.
dave, northwood,
Just shows what a banana republic Britain has become when it has lost effective control of most of the countrys' airports.
james, london, uk
here is a major gateway to the uk,first impressions and all that,owned by a spanish company.
what nonsense.
now that pm brown has become a white knight for NR then why not take back control of major airports,the water companies and the railways and do something sensible,instead of raiding pensions,taxing by the back door, and going back on his word on an eec referendum.
john haydon rowe, javea,
Why did the group not consider the debt before buying BAA, it seems to be very short sighted.
Michael, Cardiff, S glamorgan
I knew it! Having been soaked by BAA airports for every conceivable expense -- including £1 for a tiny plastic bag in which to put a dangerous tiny bottle of aftershave, or £15 for a few minutes parking -- I always suspected the people running the airports must have been desperate.
Pasing through these places is like being held upside down and shaken for every penny in your pocket. It's another reason why if it means dealing with BAA, I'd much rather go by train or not go at all.
iain carstairs, bedford, uk