BAA reacts to Competition Commission report

Posted on: August 24th, 2008 by Emily Welch

BAA has issued a formal response to the Competition Commission’s report ordering the airports owner to sell off three of its airports in the UK.

The company was told earlier this week it would be required to find owners for two of its three London airports and for one of its two airports in Scotland, due to concerns over its dominant position in the market.

That watchdog’s ruling gave rise to talk of bidding wars over the airports, but it is likely to be a few months before the government sanctions the proposal.

BAA wasted no time in issuing a rebuttal to the findings and recommendations. The company’s chief executive, Colin Matthews, said that the proposals were “flawed,” and stressed that they are coming at a time when the airports are dealing with seriously overstretched capacity.

The airports operator insists that a break-up at this time would hurt the progress that is being made toward expanding capacity at its London airports, and reducing the ‘Heathrow hassle’ factor.

Matthews added: “Just as the government is about to make the decisions that could lead to the first full-length runways being built in the south-east since the second world war, the commission risks creating uncertainty, delay and confusion.”

He stressed that the commission was misguided when referring to stimulating ‘competition in London’, as the competition Heathrow Airport faces is from other major European hubs.

www.baa.com

Comments are closed.