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03/07/2006
OFT launches study into UK airports
The Office of Fair Trading has announced that it is to study the UK airports market in order to see if it works well for consumers.
The decision comes after the announcement that Spanish company Ferrovial has bought over the UK's main airports operator, BAA.
The OFT said that the decision reflected the importance of airports to consumers and businesses within the UK.
Nearly two thirds of UK air passengers begin or end their journey at BAA airports, which include Heathrow, Gatwick, Stansted and Glasgow. Within the London area this rises to nine out of ten passengers and, in Scotland, over eight out of ten air passengers fly from a BAA airport.
UK airports are also important to the UK economy - BAA's latest turnover figures for UK airports were £1.7 billion for 2005/06, which is higher than the previous year's figure of £1.64 billion. Its profits for the last reporting period were £660 million.
The OFT said that it had not reached a decision on whether a reference for a more in-depth investigation by the Competition Commission is warranted.
OFT Chief Executive John Fingleton said: "Greater competition between airlines over the past decade has led to wider choice for air travellers and lower fares. We now think it is time to explore the potential for greater competition within the airport industry as this could ultimately yield significant benefits in terms of timely and adequate investment in UK airports, a better value service to the UK travelling public as well as potentially relieving the industry - and ultimately its customers - of the costs of regulation that may be disproportionate."
(KMcA/SP)
The decision comes after the announcement that Spanish company Ferrovial has bought over the UK's main airports operator, BAA.
The OFT said that the decision reflected the importance of airports to consumers and businesses within the UK.
Nearly two thirds of UK air passengers begin or end their journey at BAA airports, which include Heathrow, Gatwick, Stansted and Glasgow. Within the London area this rises to nine out of ten passengers and, in Scotland, over eight out of ten air passengers fly from a BAA airport.
UK airports are also important to the UK economy - BAA's latest turnover figures for UK airports were £1.7 billion for 2005/06, which is higher than the previous year's figure of £1.64 billion. Its profits for the last reporting period were £660 million.
The OFT said that it had not reached a decision on whether a reference for a more in-depth investigation by the Competition Commission is warranted.
OFT Chief Executive John Fingleton said: "Greater competition between airlines over the past decade has led to wider choice for air travellers and lower fares. We now think it is time to explore the potential for greater competition within the airport industry as this could ultimately yield significant benefits in terms of timely and adequate investment in UK airports, a better value service to the UK travelling public as well as potentially relieving the industry - and ultimately its customers - of the costs of regulation that may be disproportionate."
(KMcA/SP)
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CC Orders BAA To Sell Two Airports
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Virgin May Bid For Gatwick Ownership
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Commission Urges BAA To Sell Three Airports
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Competition Commission Questions BAA Role
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Competition Commission Questions BAA Role
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18 August 2006
Ryanair threatens action over airport security
Budget airline Ryanair is threatening to sue the government if normal airport security measures are not re-instated. Ryanair Chief Executive Michael O'Leary said that the measures restricting baggage and endorsing passenger searches risked handing extremists an "enormous PR victory.
Ryanair threatens action over airport security
Budget airline Ryanair is threatening to sue the government if normal airport security measures are not re-instated. Ryanair Chief Executive Michael O'Leary said that the measures restricting baggage and endorsing passenger searches risked handing extremists an "enormous PR victory.
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Northern Ireland WeatherToday:It will be cloudy again throughout the day. Mainly dry in the morning, but patchy drizzle in places, becoming more widespread and persistent in the afternoon. Freshening southwesterly winds. Maximum temperature 12 °C.Tonight:Cloudy with a spell of heavy rain pushing south through late evening and the early hours, followed by some clear spells. Minimum temperature 6 °C.
