BAA chief executive ousted

The chief executive of struggling airport operator, BAA, has quit amid a growing crisis at the company.

BAA, which runs Heathrow, Gatwick and Stansted airports, said the departure of Stephen Nelson follows a year of unprecedented criticism, particularly over conditions suffered by passengers at Heathrow.

Mr Nelson, a retail expert, will be replaced on 1 April by Colin Matthews, former chief executive of Severn Trent and ex-British Airways director, who is well-known for dealing with regulators.

The appointment of Colin Matthews comes as BAA prepares for the Civil Aviation Authority to impose new price caps, likely to be tough, on Heathrow and Gatwick airports for the next 5 years

Mr Nelson had only been chief executive of BAA since July 2006. Prior to this, he was Marketing Director for Sainsbury’s. He faced accusations that he cared more about developing terminal shops than improving facilities and cutting queues for passengers.

Colin Matthews, 51, is renowned for being one of the most successful turnaround specialists in British business.

Stephen Nelson is likely to receive a pay-off worth at least a year’s salary of about £700,000. His departure is just weeks before the opening of Heathrow’s £4.3 billion Terminal 5, designed to ease pressure on the congested airport.

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