The British government has watered down proposed new solvency rules for big airports which the industry had claimed would push up the cost of financing airport infrastructure projects.
Plans for a "special administration regime" designed to ensure major airports stay open in the event of their operator going bust have now been dropped, the Department of Transport said in a statement.
"The government has concluded that the implementation costs of introducing Special Administration would outweigh the benefits, and could significantly restrict airport operators' ability to commit to ongoing investment in the airport infrastructure," the DoT said.
The administration regime has been replaced by a package of proposals including a new minimum creditworthiness requirement for airport operators.
The government is also planning to give the Civil Aviation Authority responsibility for ensuring airport operators can finance their day-to-day activities.
BAA, a unit of Spanish construction group Ferrovial which runs major British airports including Heathrow, Gatwick and Stansted, said the changes would make it easier for it to complete planned investment in Heathrow.
"We welcome this statement which removes key uncertainties for BAA and its creditors and underlines the need for the regulator to ensure airport operators have the necessary resources to operate and invest in their airports" BAA said.
Reuters