Competition Commission May Order BAA To Sell Three Airports

Wednesday 20th August 2008

The CC (Competition Commission) have announced that it has made a provisional finding that may require BAA to sell three of its airports. It has also stated that each of BAA's seven airports have competition problems that result in a negative effect on passengers with the group explaining that this was due to, "their common ownership by BAA".

Edinburgh Airport could be one of the CC targets

BAA have responded to the findings by the CC describing their findings and analysis as "flawed" and expanded on this by stating, "we will continue to point out to the Commission the many areas where we believe its analysis is flawed and its remedies would be disproportionate and counter-productive". They went on to say that the findings risked making passengers lives even more difficult and commented, "the Commission risks creating uncertainty, delay and confusion at exactly the wrong time".

The CC have outlined problems with planning systems, certain areas of government policy, and system regulation. Remedies to the problems have been published by the CC which will now undergo a period of consultation. In a press release dated the 20th of August the group stated that "The CC has also published its proposed remedies on which it will now consult. If these are implemented, the CC will order BAA to sell two of its three London airports, and also either Edinburgh or Glasgow airport".

If the consultation results in these remedies being implemented then the result will be that BAA will be ordered to sell two of its three airports in the London area as well as Edinburgh or Glasgow Airport. The results of this consultation should be expected in early 2009. The CC are currently looking at which airports should be sold should the decision be made

They have additionally stated that "The CC is seeking views on those aspects of Government policy which adversely affect competition by restricting or distorting the development of airport capacity".