UK watchdog says BAA should sell three airports

The break-up of UK airports owner BAA has been long-awaited, and drew nearer to a reality today with the release of the Competition Commission’s proposal that the company be forced to sell three of its seven airports, which would be the largest shake-up in the UK’s airline industry in decades.

The ruling was tougher than expected by most industry observers, with the watchdog group noting competition problems at all of BAA’s airports, and stating that the problem would likely be best addressed by the owner selling two of its three London airports (Gatwick, Heathrow and Stansted) and one of its two airports in Scotland (Edinburgh and Glasgow).

As well as BAA’s monopolistic ownership of seven airports, the commission also noted that competition was affected by the system of airport regulation, planning rules and government policy on airports.

BAA has been the recipient of severe criticism in recent years for the service it provides at its various airports, particularly during peak periods, such as the summer holiday months. The criticism grew stronger following the chaos surrounding the opening of Heathrow Terminal 5 a few months back, with both BAA and British Airways blamed for the mess.

Christopher Clarke, the chairman BAA inquiry group, stated this morning that the problem with a lack of competition was also that BAA wasn’t responding to its airline customers’ needs.

“This has resulted in investment that is not tailored to the requirements of airport users and lower levels and quality of service for both airlines and passengers,” added the chairman. Clarke is now seeking independent input on which of the airports should be sold off.

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