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Commission to outline BAA probe Commission to outline BAA probe
(about 1 hour later)
The Competition Commission is due to set out the main issues it will study in its investigation into airport operator BAA.The Competition Commission is due to set out the main issues it will study in its investigation into airport operator BAA.
BAA, which owns seven UK airports including Heathrow and Gatwick, was referred to the Commission in March by the Office of Fair Trading (OFT). BAA, - which owns Heathrow, Gatwick and Stansted and four other UK airports - was referred to the Commission by the Office of Fair Trading.
Amid airline calls for BAA to be broken up, the OFT said it suspected BAA's high market share damaged competition.Amid airline calls for BAA to be broken up, the OFT said it suspected BAA's high market share damaged competition.
BAA insists the problem is lack of capacity, not how many airports it has.BAA insists the problem is lack of capacity, not how many airports it has.
The firm, which was bought by Spanish group Ferrovial in 2006, said in March that it had no intention of selling any of its UK airports, which also include Southampton, Glasgow, Edinburgh and Aberdeen. The firm, which was bought by Spanish group Ferrovial in 2006, said in March that it had no intention of selling any of its UK properties, which also include Southampton, Glasgow, Edinburgh and Aberdeen.
Political criticismPolitical criticism
However, criticism of BAA has increased in recent weeks, with attacks from both Labour and the Conservatives.However, criticism of BAA has increased in recent weeks, with attacks from both Labour and the Conservatives.
BAA PASSENGER NUMBERS Heathrow - 67.7 million a year Gatwick - 32 millionStansted - 22 millionSouthampton - 1.5 million Glasgow - 8.7 millionEdinburgh - 8 millionAberdeen - 2.7 million Source: BAABAA PASSENGER NUMBERS Heathrow - 67.7 million a year Gatwick - 32 millionStansted - 22 millionSouthampton - 1.5 million Glasgow - 8.7 millionEdinburgh - 8 millionAberdeen - 2.7 million Source: BAA
While London Mayor Ken Livingstone said Heathrow "shamed London", the Conservatives described BAA as "an airport operator who seems more concerned with running shopping malls than an efficient [Heathrow] airport". London Mayor Ken Livingstone has said that Heathrow "shames London", while the Conservatives have described BAA as "an airport operator who seems more concerned with running shopping malls than an efficient [Heathrow] airport".
BAA has also been criticised by some quarters for seeking and gaining a legal injunction to ban some green activists from protesting at Heathrow about climate change.BAA has also been criticised by some quarters for seeking and gaining a legal injunction to ban some green activists from protesting at Heathrow about climate change.
The Commission must make its final report by March 2009, but is expected to publish its preliminary findings in summer 2008, with the full report following by the end of that year.The Commission must make its final report by March 2009, but is expected to publish its preliminary findings in summer 2008, with the full report following by the end of that year.
It is also looking at the level of charges that BAA is allowed to impose on airlines for using its airports, with the report on this issue due by the end of September this year.It is also looking at the level of charges that BAA is allowed to impose on airlines for using its airports, with the report on this issue due by the end of September this year.
BAA has a 60% market share of all UK passenger flights, rising to 90% in the south of England.BAA has a 60% market share of all UK passenger flights, rising to 90% in the south of England.