BAA ordered to sell two UK airports

Posted 20/07/2011

Airports operator BAA has been ordered to sell Stansted and either Glasgow or Edinburgh airports.

BAA has already sold Gatwick but it had challenged the order by the Competition Commission in March 2009 that it should also sell Stansted and one of its Scottish airports. It claims that Stansted serves a different market to Heathrow.

However, the Commission said in its final ruling that it stood by its earlier decision that the Spanish-owned company must offload the Essex airport and either Glasgow or Edinburgh.

BAA said it was dismayed at the decision, which it called 'draconian' and it is now considering a judicial review. The airport operator has already been refused permission by the Supreme Court to appeal further.

 The sale of two further airports would leave the company with Heathrow, Southampton and Aberdeen and one other Scottish airport.

The Competition Commission said the sale of Stansted would start in three months' time, and would be followed by the sale of Glasgow or Edinburgh.

"Our report has been challenged, reviewed and upheld and it is clear that the original decision to require BAA to divest three airports remains the right one for customers," said Peter Freeman of the Competition Commission.

The commission said its decision was "fully justified" and passengers and airlines "would still benefit from greater competition with the airports under separate ownership, despite the current government's decision to rule out new runways at any of the London airports".

By Linsey McN

Originally published 20 Jul 2011 at: http://rss.feedsportal.com/c/398/f/5923/s/16c3811b/l/0L0Stravelmole0N0Cstories0C11485720Bphp0Dmpnlog0F1/story01.htm