Apr
24
BAA airport ownership and regulations.
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After the publication of an interim report by the Competition Commission BAA could be forced to sell off one or more of the airports it owns in the UK.
BAA have been in the news recently answering questions and wrapped up in Heathrow’s Terminal 5 baggage handling trouble, but now it seems that they themselves are in for a bumpy ride. 
BAA who owns airports including Heathrow, Stansted, Gatwick and Southampton along with Glasgow, Edinburgh and Aberdeen in Scotland. Could be forced to sell one or more of the airports it owns due to lack of competition creating a poor service for airlines and passengers using them.
Christopher Clarke, the chairman of the commission’s inquiry, said one of the features it had identified as potentially limiting competition was the common ownership of BAA’s seven airports.
“We are particularly concerned by its apparent lack of responsiveness to the differing needs of its airline customers, and hence passengers, and the consequences for the levels, quality, scope, location and timing of investment and quality of service.”
Clarke said separate ownership of Glasgow and Edinburgh had the potential to create competition with each other and other airports in Scotland. In the south-east, the position was complicated by a shortage of airport capacity, which would hinder the creation of competition in the short term, between Heathrow, Gatwick and Stansted even under separate owners. “But separate ownership would itself create a greater incentive to expand capacity,” Clarke said.
BAA, said it saw no case for breaking up the company. Its Scottish airports had different catchment areas while in the south-east, the airports were not in competition with each other; rather Heathrow competed with rival international hub airports in Europe and beyond. BAA chief executive, Colin Matthews, said: “The challenge for us all in addressing the lack of capacity in the south-east is how we ensure the timely delivery of investment. BAA remains committed to making the investment needed to transform our airports and improve passenger service standards in London, Scotland and Southampton.
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