Sale of three BAA airports proposed

3:10pm Wednesday 20th August 2008

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Heavily-criticised airport company BAA will almost certainly have to sell three of its seven UK airports following a damning report by the Competition Commission (CC).

Spanish-owned BAA is set to have to give up Gatwick and Stansted airports in southern England and one of either Glasgow or Edinburgh airports.

In a preliminary report, the commission said "significant competition problems" arose from BAA's ownership of the seven UK airports, which also include Heathrow.

The CC accused BAA of a lack of responsiveness to the needs of its airline customers, and a lack of initiative in planning capacity.

It also said the group's investment was not tailored to the requirements of airport users, and cited lower levels and quality of service for both airlines and passengers.

The commission will consult on its proposed remedies ahead of its final report on BAA airport ownership in the first part of next year.

It added that if these remedies were implemented the CC would "order BAA to sell two of its three London airports and also either Edinburgh or Glasgow airport".

The two London sales are almost certain to mean Gatwick and Stansted as the CC said it was unlikely to "require the divestiture" of Heathrow unless the sale of Gatwick or Stansted was likely to be impractical or ineffective.

The report comes following many months of difficulties for passengers at BAA airports, particularly Heathrow where the shambolic opening of the £4.3 billion Terminal 5 in March this year was the last straw for some customers.

Opposition politicians and airlines welcomed the CC proposals but BAA chief executive Colin Matthews said the commission risked "delaying the delivery of new runways and making better customer service less, not more, likely".