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BAA airport ownership criticised BAA airport ownership criticised
(20 minutes later)
The Competition Commission has said BAA's ownership of seven UK airports "may not be serving well the interests of either airlines or passengers". BAA's ownership of seven UK airports "may not be serving well the interests of either airlines or passengers", the Competition Commission has said.
The commission's "emerging thinking" report said that BAA, "dominates the airports markets in the south-east of England and in lowland Scotland".The commission's "emerging thinking" report said that BAA, "dominates the airports markets in the south-east of England and in lowland Scotland".
Its next report in August may call on BAA to sell one or more airports.Its next report in August may call on BAA to sell one or more airports.
BAA owns Heathrow, Gatwick, Stansted, Edinburgh, Glasgow, Southampton and Aberdeen airports.BAA owns Heathrow, Gatwick, Stansted, Edinburgh, Glasgow, Southampton and Aberdeen airports.
BAA is itself owned by the Spanish company Ferrovial.
'Lack of responsiveness''Lack of responsiveness'
BAA is itself owned by the Spanish company Ferrovial.
The Competition Commission stressed that it had not yet reached any conclusions but added that it would set out its remedies to any competition problems in August, "whether requiring the sale of one or more of BAA's airports or otherwise".The Competition Commission stressed that it had not yet reached any conclusions but added that it would set out its remedies to any competition problems in August, "whether requiring the sale of one or more of BAA's airports or otherwise".
"We are particularly concerned by its (BAA's) apparent lack of responsiveness to the differing needs of its airline customers, and hence passengers," said Christopher Clarke, chairman of the BAA airports inquiry."We are particularly concerned by its (BAA's) apparent lack of responsiveness to the differing needs of its airline customers, and hence passengers," said Christopher Clarke, chairman of the BAA airports inquiry.
Mr Clarke was also worried that having so many airports owned by BAA meant that big development projects were being carried out one at a time.Mr Clarke was also worried that having so many airports owned by BAA meant that big development projects were being carried out one at a time.
Airport capacity
He added that the point of giving BAA ownership of Heathrow, Gatwick and Stansted after privatisation in 1987 was to make sure there would be adequate airport capacity in the south-east of England, but that there was still a shortage of capacity.He added that the point of giving BAA ownership of Heathrow, Gatwick and Stansted after privatisation in 1987 was to make sure there would be adequate airport capacity in the south-east of England, but that there was still a shortage of capacity.
The regulator conceded that competition in the south-east of England was unlikely in the short term because of the lack of capacity, but suggested that having airports separately owned could help to encourage growth in capacity.
It also said that there was potential for competition between Heathrow and Gatwick airports and Southampton.
In Scotland, the report said there was potential for competition between Edinburgh and Glasgow airports, although the ownership of Aberdeen airport was less of an issue.