BAA to lose three UK airports

Airport operator BAA is to lose control of three airports including two in London, competition chiefs have ruled. The Competition Commission (CC) signalled the break-up of the firm's UK airport empire by proposing the company cease running two of its three London hubs - Heathrow, Gatwick and Stansted. The commission also recommended the Spanish-owned company lose control of either Edinburgh or Glasgow airport. Its report effectively means BAA will have to give up running Gatwick and Stansted as the commission made it clear it was "unlikely to require the divestiture of Heathrow unless the sale of Gatwick or Stansted is likely to be impractical or ineffective". BAA also runs Southampton and Aberdeen airports. The company bore the brunt of passengers' anger after the disastrous opening of Heathrow Terminal 5, which saw thousands of bags lost and flights cancelled. Christopher Clarke, chairman of the CC's BAA airports inquiry group, said: "We have provisionally found that there are significant competition problems arising from BAA's common ownership of seven UK airports. "This is evident from a large number of factors including its lack of responsiveness to the needs of its airline customers and a lack of initiative in planning capacity. "This has resulted in investment that is not tailored to the requirements of airport users and lower levels and quality of service for both airlines and passengers." BAA chief executive Colin Matthews said: "The commission risks delaying the delivery of new runways and making better customer service less, not more, likely."

» More on this story... «

ITN | August 20, 2008