BAA may have to sell airports
Wednesday, 20 Aug 2008 09:41
The Competition Commission has proposed that airport operator BAA should sell two of its three London airports and either Edinburgh or Glasgow airport, in a report released today.
Its provisional findings confirmed the view that there are competition problems at each of BAA's seven UK airports, with adverse consequences for passengers and airlines.
As well as common ownership by BAA the commission also identified problems with the planning system, aspects of government policy and the system of regulation.
The Commission will now consult on the proposed remedies and make final decisions in a report to be issued in the first quarter of 2009.
BAA's response to the provisional findings has been to focus on the "urgent need for new airport capacity and a modern regulatory framework".
Chief executive Colin Matthews also acknowledged the need "for improved service from the airport operator".
He warned the commission's findings risk delaying the delivery of new runways and better customer service.
Meanwhile BAA has completed a £13.3 billion re-financing deal, which Mr Matthews claims will allow the airports operator to deliver a significant investment programme.
BAA owns Heathrow, Gatwick, Stansted and Southampton airports in England, and Edinburgh, Glasgow and Aberdeen airports in Scotland.