BAA to sell three airports

In its final report on BAA’s ownership of seven UK airports, the UK’s Competition Commission (CC) has stated that it will require BAA to sell both Gatwick and Stansted as well as either Edinburgh or Glasgow. It also stipulates that BAA must sell all three airports within two years. They are to be sold in sequence, beginning with Gatwick, then Stansted, followed by either Edinburgh or Glasgow. The sale of Gatwick was initiated by BAA in September 2008 and the process is already under way.
The CC’s final report takes into account the substantial evidence received from BAA, the airlines, the CAA and many other parties over almost two years, including the further evidence since the publication in August 2008 of the provisional findings and proposals on possible remedies.
The report finds competition problems with adverse effects for both passengers and airlines at all seven of BAA’s UK airports (Heathrow, Gatwick, Stansted and Southampton in the south of England, and Edinburgh, Glasgow and Aberdeen in Scotland). A key problem at BAA’s airports in the south-east and in lowland Scotland is common ownership, which precludes any competition between them. There are additional problems at the London airports arising from the current system of regulation, planning and aspects of government policy. The problems at Aberdeen derive from its isolated geographical position, giving it the characteristics of a local monopoly, Passenger Terminal today reported.
 

Source: Transportweekly