BAA could be forced to sell

20/08/2008

Airport company BAA could be forced to sell three of its airports after a damning verdict by the Competition Commission.

The commission's report found "significant competition problems" and recommended it sold "two of its three London airports, and also either Edinburgh or Glasgow airport".

Enquiry group chairman Christopher Clarke was scathing in his comments. He observed a "lack of responsiveness to the needs of its airline customers and a lack of initiative in planning capacity".

BAA rebuffed the findings – it said the report risks delaying the introduction of new runways and making better customer service less, not more, likely.

The airport company, a large employer of retail jobs, has argued there is little hope for competition as long as capacity constraints remain in place.

The Competition Commission believes the opposite. It argues unless the market is opened up to competition "there is a serious risk that the current capacity constraints will persist".

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