BAA USA

BAA USA

Company type	Subsidiary
Industry	Airport retail and concessions management
Founded	1992
Defunct	2010
Fate	Sold to Prospect Capital Corporation and renamed AirMall USA
Headquarters	Pittsburgh, Pennsylvania , United States
Products	AirMall, airport retail operations beyond security checkpoints

BAA USA, referred to simply as BAA within the United States, functioned as the American branch of the British airport operator BAA. At its height, BAA USA oversaw AirMall and managed retail operations beyond security checkpoints at multiple airports across the U.S. Founded in 1992, it operated through city-specific subsidiaries bearing the BAA prefix. In 2010, Prospect Capital Corporation purchased BAA USA, renaming it AirMall USA as part of BAA's strategy to divest certain assets.

History

The origins of BAA trace back to the privatisation of the British Airports Authority government entity and its regulation under the Airports Act 1986, which imposed limits on airport service charges within the UK. BAA USA was established to pursue revenue opportunities outside these UK regulatory limits.

In 1992, BAA USA secured the contract to manage retail concessions at Pittsburgh International Airport, where it introduced the AirMall concept with a pricing policy ensuring that on-airport shops did not exceed prices found offsite. The company’s headquarters were located at Pittsburgh Airport. By 1994, BAA USA had obtained a management agreement at Indianapolis International Airport. The company reported earnings of $66 million in 1995. Expansion continued with management of Harrisburg International Airport beginning in 1997, followed by a contract for Newark International Airport in 1998. A concessions agreement was added at Logan International Airport in 2000.

New York and final years

During 2000, against the backdrop of tensions between the Port Authority of New York and New Jersey and New York City, Mayor Rudy Giuliani threatened to award BAA USA contracts to operate John F. Kennedy International Airport and LaGuardia Airport, with intentions toward eventual ownership. Giuliani ultimately granted these contracts to BAA USA. In retaliation, the Port Authority revoked BAA USA’s Newark contract, which Giuliani described as "vindictive." In 2001, the Susquehanna Area Regional Airport Authority ended BAA USA's contract at Harrisburg Airport due to non-compliance with workers’ compensation obligations and unmet performance goals. BAA USA initiated legal action and settled out of court for $650,000; all staff were retained except for the director. Efforts for BAA USA to take over New York airports were halted after Giuliani’s successor, Michael Bloomberg, extended the Port Authority’s lease agreements.

By 2005, BAA USA was managing concessions at Baltimore/Washington International Airport. In 2008, it won the concession contract at Cleveland Airport under its AirMall brand. Later that year, following a decision by the British Competition Commission mandating that BAA divest certain UK airports, the company announced plans to sell off "non-core assets." Ultimately, in 2010, BAA USA was sold for $50 million to Prospect Capital Corporation, which rebranded it as AirMall USA.