Budget airlines want BAA break-up

BAA owns Heathrow Airport

Britain's two biggest budget airlines are calling for the UK's largest airport operator to be broken up.

BAA operates almost all the UK's busiest airports and owns Heathrow, Gatwick, Stansted, Glasgow, Aberdeen Edinburgh and Southampton.

But Easyjet and Ryanair, which dominate the UK low-cost airline market, have told BBC News they want the airports to compete with each other.

This would reduce costs and raise standards, they say.

But BAA, formerly known as the British Airports Authority, has dismissed the calls.

Research indicates its landing charges are already highly competitive, it says.

Takeover attempts

BAA is the world's biggest publicly owned airport operator.

When it was privatised 16 years ago, the government retained a 15% stake in the company to prevent unwanted takeover attempts.

Earlier this year the European Court of Justice ruled that stake illegal.

And last month ministers indicated they would not appeal against the ruling.

However, the government is expected to retain an element of control over the £5bn company as it controls the granting of planning permission for airport expansions.