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Regulator to order airports sale Regulator orders sale of airports
(20 minutes later)
The Competition Commission is expected to confirm the break-up of airports operator BAA by ordering the sale of Stansted airport as well as Gatwick. The Competition Commission has confirmed the break-up of airports operator BAA and ordered the sale of Gatwick and Stansted.
In the final report of its two-year investigation to be published later, it will also order the sale of one of BAA's three Scottish airports. In the final report of its two-year investigation, the commission also told BAA that it must also sell either Edinburgh or Glasgow airport.
It has looked into BAA's dominance over airports in Scotland and the south-east of England; BAA owns a total of seven.It has looked into BAA's dominance over airports in Scotland and the south-east of England; BAA owns a total of seven.
The regulator has already begun to vet potential bidders for Gatwick.The regulator has already begun to vet potential bidders for Gatwick.
In its provisional decision published in December, the commission said the lack of competition between airports owned by BAA was detrimental to passengers. 2008 PASSENGER NUMBERS AT BAA AIRPORTS Heathrow: 66.9 millionGatwick: 34.2 millionStansted: 22.3 millionEdinburgh: 9.0 millionGlasgow: 8.1 millionAberdeen: 3.3 millionSouthampton: 2.0 million Source: BAA annual report In its provisional decision published in December, the commission said the lack of competition between airports owned by BAA was detrimental to passengers.
It concluded that BAA, which also owns Heathrow, should sell Gatwick and Stansted airports in the south-east of England.
It also said Edinburgh airport should be sold, although it invited further views on this. BAA also operates Glasgow and Aberdeen airports.
Paul Charles, a spokesperson for Virgin Atlantic, told the BBC that Thursday's decision could lead to cheaper fares in the long term.
"If there is decent competition the prices will come down," he said.
Last month, BAA said a fall in passenger numbers, brought on by the economic downturn, had dented its 2008 profits, which declined by 18.4% from the year earlier.
It reported a profit of £582m before tax and interest, down from £713m in 2007, as 2.7% fewer travellers went through its seven UK airports.