Airports see domestic passengers shift to rail

The three largest airports in Scotland reported decreased passenger numbers for July, which their owner described as another result of the high price of fuel and the credit crunch.

The actual decrease was 2.3 per cent over July of 2007, reported by BAA, the airports operator owned by Spain’s Ferrovial. BAA is expecting to be forced to sell off at least one of its seven UK airports this week, when the UK monopoly watchdog issues a report on its findings and recommendations.

BAA noted that close to 2.2 million passengers passed through Aberdeen, Edinburgh and Glasgow airports in July, which is the busiest month for summer getaways. International traffic increased by 2.3 per cent, while domestic business at the airports was down by 6.8 per cent.

Experts say that the results suggest that BAA and the airlines operating from the three airports are facing real competition from rail services for passengers traveling to points within Britain.

The downturn in domestic passenger numbers is expected to continue through the coming winter. BA has already cut one of its Glasgow to Heathrow flights, and rail service from Scotland to England is expected to be faster by early 2009.

BAA, which is expected to sell off Glasgow Airport and at least one of its London-area airports following the release of the Competition Commission report this week, has announced that its parent company, Ferrovial, has agreed to a refinancing deal worth £13.3 billion.

www.baa.com