Page last updated at 08:08 GMT, Wednesday, 17 December 2008

BAA told to sell three airports

Passengers at Gatwick Airport
About 35 million passengers passed through Gatwick in 2007

The Competition Commission has said it will require BAA to sell Gatwick, Stansted and Edinburgh airports.

The watchdog says the decision is subject to a final consultation but is necessary to improve levels of service at UK airports.

In August, the watchdog had said BAA may have to sell three of its airports because of a lack of competition.

BAA said that it did not believe the Commission had "compelling evidence" that Stansted should be sold.

It added that there was "no justification" for specifying which Scottish airport should be sold.

"We do not believe that it has set out compelling evidence to support its view that selling Stansted as well as Gatwick will increase competition and we remain concerned that its proposed remedies may actually delay the introduction of new runway capacity," BAA said.

BAA, which runs seven UK airports, was bought by Spanish firm Ferrovial for more than 10bn in 2006.

Incentive

The Competition Commission said it would also propose measures to ensure that service and investment at Heathrow meets the needs of airlines and passengers.

2007 PASSENGER NUMBERS AT BAA AIRPORTS
Stansted airport
Heathrow: 67.8 million
Gatwick: 35.1 million
Stansted: 23.7 million
Edinburgh: 9.0 million
Glasgow: 8.7 million
Aberdeen: 3.4 million
Southampton: 1.9 million
Source: BAA

"Under separate ownership, the airport operators including BAA, will have a much greater incentive to be far more responsive to their customers, both airlines and passengers," the Competition Commission said.

BAA had put Gatwick up for sale following the Competition Commission's initial report in August.

Several firms are said to be interested in buying Gatwick, which has been valued at 1.8bn by regulators.

Potential bidders include Australian company Macquarie, Germany's Fraport, and the owners of Manchester airport.

Virgin Atlantic has said it is preparing a bid as part of a consortium.

The Competition Commission said it would consider responses to its provisional decision and it would publish its final report in late February or early March.

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SEE ALSO
Virgin Atlantic plans Gatwick bid
14 Nov 08 |  Business
Gatwick Airport put up for sale
17 Sep 08 |  Business
Q&A: Future of British airports
20 Aug 08 |  Business
BAA 'should sell three airports'
20 Aug 08 |  Business
In quotes: BAA break-up threat
20 Aug 08 |  Business
BAA expects forced airport sales
16 Aug 08 |  Business

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