BAA has advised Indianapolis International Airport (IIA) that it is to withdraw from its airport management contract at the end of this year – a year earlier than its contract requires.

This follows the decision last year by its new Ferrovial-led consortium owners that they want to concentrate on the airport company's core airports in the UK. IIA said in a statement that BAA has given a good period of notice to ensure a smooth hand over in advance of the opening of its new $1.07bn midfield terminal in late 2008.

The airport said that the exact timing of the hand over will be decided between the two parties in the next few weeks, but it added that many of those currently working in the present management team will migrate to the new management entity when it is created.

Currently BAA employs around 450 people in administrative and commercial positions and these individuals will be offered new positions as airport employees.

In a statement, Lacy Johnson, President of the IIA Airport Authority Board paid tribute to the improvements at the airport since BAA first came in to manage it in 1995: ‘Their leadership in introducing a more commercial approach through expanding the airport's retail and parking offerings was paramount. Their role contributed greatly to the development of additional non-airline revenue.
We thank BAA for its role in the continued success of Indianapolis International Airport.’ According to reports, BAA's departure from Indianapolis is expected to save the airport around $2m a year in management fees.