BAA investigation gets IATA thumbs up

As reported earlier in the week, after the urgings of major UK airlines, the Competition Commission carried out an investigation into the BAA monopoly at UK airports, and found grave changed need to be made. Airlines like Ryanair and bmi voiced their displeasure with the BAA monopoly and how many of the problems with Britain’s airports lie in this fact.

The International Air Transport Association said today that it supported the investigation and the implementation of immediate changes in the system. Chief executive and director general of the IATA Giovanni Bisignani was quoted as saying, “The Competition Commission has come to the same conclusion that every passenger using the U.K.’s main airports knows all too well: there is a problem with the U.K. airports that must be fixed urgently. London, where BAA owns the three major airports, is the most critical area.

It is perverse that BAA’s profits rise as service levels fall. Breaking up BAA to introduce some competition is a step in the direction of a solution. The problem is serious and half-measures won’t help. We need a complete overhaul of the CAA economic regulation to focus it on delivering excellent infrastructure for passengers – not excessive profits for the BAA.”

www.iata.org