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Watchdog recommends BAA break-up BAA 'should sell three airports'
(10 minutes later)
BAA may have to sell three of its seven UK airports because of concerns about its market dominance, the Competition Commission has said.BAA may have to sell three of its seven UK airports because of concerns about its market dominance, the Competition Commission has said.
The watchdog is recommending that the airport operator should have to sell two of either Heathrow, Gatwick and Stansted airports in the South East.The watchdog is recommending that the airport operator should have to sell two of either Heathrow, Gatwick and Stansted airports in the South East.
It also believes BAA should not be allowed to continue to own airports in both Glasgow and Edinburgh.It also believes BAA should not be allowed to continue to own airports in both Glasgow and Edinburgh.
BAA said it had "no intention" of selling Heathrow, its largest airport.
The final decision on the company's future will be taken next April.The final decision on the company's future will be taken next April.
Ownership concerns
Publishing the preliminary findings of its inquiry into BAA's control of the UK's largest airports, the commission said BAA's current ownership structure was having "adverse consequences" for passengers and airlines.
BAA has been fiercely criticised for poor customer service and delays at its airports, particularly Heathrow.
The commission said many of the problems of recent years were due to the "common ownership" of Heathrow, Gatwick and Stansted, which account for nearly 90% of departures and arrivals into London.
It will now consult on whether it is appropriate for BAA to have to sell two of its three flagship airports but that now looks likely.
The commission said that BAA was likely be allowed to keep control of Southampton and Aberdeen airports, its two smallest airports, because they did not present competition concerns.
BAA's chief executive Colin Matthews said he accepted the report's concerns about "poor service" and "frustration" for passengers.
He declined to comment on the future for individual airports but said BAA had "no intention of selling Heathrow".