Regulator orders sale of BAA-owned airports

March 19, 2009

The Competition Commission has just confirmed the break-up of BAA. It has ordered the Gatwick and Stansted sale. The commission has looked into dominance of BAA over airports in the south-east of England and Scotland; BAA owns a total of seven.

In the final report submitted after two-year long investigation, the Competition Commission also told BAA that the airports operator must also sell either Glasgow or Edinburgh airport. BAA responded by stating the commission’s findings and analysis conclusions were flawed.

In its provisional decision, the Competition Commission stated the lack of competition between BAA airports owned was detrimental to passengers. It ordered that these airports be sold within a couple of years.

The airports are to be sold in sequence, beginning with Gatwick, followed by Stansted, and finally either Glasgow or Edinburgh as part of an orderly sale process. The Gatwick sale process is already under way. Possible buyers are now being vetted.

The regulator said it was the

“only way to comprehensively address the detriment to passengers and airlines from the total absence of competition between BAA’s south-east airports and between Edinburgh and Glasgow”

It added: