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Decision day in airport sell-off BAA ordered to sell Scots airport
(about 8 hours later)
Britain's competition watchdog is due to rule on whether one of Scotland's biggest airports must be sold. Britain's competition watchdog has given airport company BAA the option of selling Glasgow or Edinburgh airport.
An interim report last year by the Competition Commission said operator BAA should sell Edinburgh airport. An interim report last year by the Competition Commission said BAA should sell Edinburgh airport.
But the commission's final report, to be published at 0700 GMT, may give BAA the option to sell Glasgow instead. But the commission's final report has now given the operator the option to sell either of the two airports.
BAA has already announced plans to sell Gatwick airport but said it wanted to retain all of its Scottish hubs - in Glasgow, Edinburgh and Aberdeen. Gordon Dewar from BAA said no decision had been made about whether either Glasgow or Edinburgh would be sold - and refused to rule out an appeal.
The commission added that Aberdeen Airport had to improve consultation with airlines and publish financial information to improve transparency.
It also ruled that BAA must first sell both Gatwick and Stansted airports, and that all three airports should be sold within three years.
We continue to believe that the commission's analysis of the Scottish airports market is misguided and its remedies may not be practical in current economic conditions Gordon DewarBAA Scotland
BAA has already announced plans to sell Gatwick airport but said it wanted to retain all its Scottish hubs - in Glasgow, Edinburgh and Aberdeen.
The Spanish-owned company currently runs seven airports in Britain.The Spanish-owned company currently runs seven airports in Britain.
More transparency The commission has said it must sell three of them, including one in Scotland, to increase choice for its customers, both passengers and airlines.
The Competition Commission has said it should sell three of them, including one in Scotland, to increase choice for its customers, both passengers and airlines. The airports must be sold to different purchasers.
It identified Edinburgh airport but said it "remained open to further views on the alternative of selling Glasgow airport".
The commission also wanted rebates on landing charges at Aberdeen airport, but it may also soften this line, instead asking for more transparency on its charges.
BAA said it would use the consultation period to try to persuade the commission to change its mind on the sale of Scottish airports.
Manchester Airports Group - which owns several airports in England - is reported to be among potential bidders if Glasgow or Edinburgh come up for sale.Manchester Airports Group - which owns several airports in England - is reported to be among potential bidders if Glasgow or Edinburgh come up for sale.
BAA's other airports include Heathrow, Stansted and Southampton. BAA's other airports include Heathrow and Southampton.
Competitive rivalry
Christopher Clarke, who chaired the inquiry, said the sale of the airports would bring "substantial benefits to passengers and airlines".
He said: "We expect that the new airport owners, with the operating capabilities and financial resources to develop them as effective competitors, will have a much greater incentive than BAA to be more responsive to their customers."
He added that the airport sales would "kick-start a process of competitive rivalry from a standing start where today there is no competition at all".
BAA said it would consider the terms of the report before deciding how to respond, but it may contest the ruling.
BAA's Gordon Dewar said: "We remain proud of our track record in Scotland, and have delivered substantial investments in both customer service and route development, to the country's clear competitive advantage.
"We continue to believe that the commission's analysis of the Scottish airports market is misguided and its remedies may not be practical in current economic conditions."