BA/Heathrow Airport-Preferred Bidder Announcement

RNS Number : 7605A

Babcock International Group PLC

25 March 2013

Babcock International Group PLC

British Airways ground support and Heathrow Airport Ltd preferred bidder announcement

Babcock International Group PLC (Babcock, the Group) today announces that it has been awarded preferred bidder status on contracts to provide ground fleet maintenance to British Airways (BA) and baggage handling systems operations and maintenance for Heathrow Airport Limited (HAL).

The contracts, worth a combined total in the order of £440 million, will become effective in the first half of the next financial year. Both contracts are for five years and there is an option to extend the contract with HAL for a further two years.

Following the award of the contract with HAL, Babcock will be responsible for the operations and maintenance of all baggage handling systems across the Heathrow campus. In addition to previous activities at Terminal 1 and 4, Babcock is taking on the maintenance and support of baggage systems at Terminals 3 and 5. Subject to final contract signature, Babcock will continue to be responsible for the maintenance of BA's ground support equipment fleet at Heathrow, including de-icing units, passenger buses, scissor lifts and pushback tractors.

Peter Rogers, Chief Executive of Babcock, commented:

"We are delighted to have been successful in these two rebids and to be expanding the scope of services we provide to Heathrow Airport Limited. The two awards reflect our proven ability to provide complex and critical mobile asset management and equipment support. We look forward to further enhancing our strong working relationship with both Heathrow Airport Limited and British Airways."

Enquiries

Babcock International Group PLC 020 7355 5300

Bill Tame, Group Finance Director
Terri Wright, Head of Investor Relations

FTI Consulting 020 7269 7291

Andrew Lorenz
Nick Hasell

Notes to editors

Babcock is the UK's leading engineering support services company with revenue of £3.1 billion in 2012 and an order book of around £12 billion. Managing vital assets valued at over £40 billion, Babcock delivers critical asset support to many sectors, including transport, energy, defence, telecommunications and education.

We take great pride in the considerable depth and breadth of our people's expertise. Our 25,000 skilled staff design, build, manage, operate and maintain assets that are vital to the delivery of many key public services, both in the UK and overseas. Our market-leading reputation is based on one key fact: Babcock is a partner that can be trusted to deliver.

For over 20 years Babcock has been providing world-leading engineering services to airlines and airports operators.

Babcock's areas of expertise include:

· The end to end management of baggage handling systems, from design through to installation, operation, maintenance and development

· Airports IT systems

· The management, maintenance and optimisation of complex fleets of airports ground support equipment

· Resilience and support to front line operational teams

Our customer base is unparalleled and includes a number of world renowned airlines and airport operators. These include:

· In the UK, Heathrow, Gatwick, Stansted and Edinburgh Airports

· British Airways

· Schiphol, Vancouver and Dubai Airports

· Dnata Air Services

www.babcockinternational.com