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BAA told to sell airports to improve competition
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BAA, the British airport operator, has been told to sell two of its three London airports by the Competition Commission (CC).
In a report by the CC published today, it is also proposed that the company relinquishes control of either Glasgow or Edinburgh airport. The CC's findings argue that BAA's ownership of seven British airports has had an adverse effect on the interests of both passengers and airlines due to a lack of competition. The report also found competition problems had come about due to the current planning system, Government policy and the regulatory system. Christopher Clarke, chair of the BAA Airports inquiry, said: "There are significant competition problems arising from BAA's common ownership. This is evident from a large number of factors, including its lack of responsiveness to the needs of airline customers and a lack of initiative in planning capacity. "We are turning our attention to possible remedies. Specifically, we are seeking views on which two of BAA's three London airports should be sold and similarly which of Edinburgh or Glasgow airports should be sold." In response to the CC's provisional findings, BAA's chief executive, Colin Matthews, argued that a current lack of capacity was to blame for competition problems. "The CC's findings should be assessed in the light of urgent need for new airport capacity and a modern regulatory framework, as well as the need - which we recognise - for improved service from the airport operator," said Matthews.
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BAA, the British airport operator, has been told to sell two of its three London airports by the Competition Commission (CC).
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