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17/12/2008
BAA Told To Sell Three Airports
The Competition Commission (CC) has confirmed that, subject to final consultation, it will require BAA to sell both Gatwick and Stansted airports as well as Edinburgh airport.
It also proposes to introduce measures to ensure that investment and levels of service at Heathrow, and possibly Gatwick and Stansted, meet more effectively the needs of airlines, passengers and other airport users. At Aberdeen airport, it is proposing measures to promote investment linked to rebates on charges.
The CC also intends to make recommendations to the Government on a more effective, and ultimately more flexible, system of airport regulation and also on aspects of government airports policy.
Christopher Clarke, Chairman of the BAA Airports inquiry, said: "Having provisionally identified competition problems at each of BAA's seven airports, we are proposing remedies which address them directly and comprehensively through a combination of divestment and other measures to improve investment and levels of service.
"The most effective way to introduce competition in the South-East and in lowland Scotland is to require the three London airports and the two principal Scottish airports to be separately owned. Hence we are proposing the sale of Gatwick, Stansted and Edinburgh airports to new independent owners with the operating capabilities and financial resources to develop each of them as effective competitors."
However, BAA Chief Executive Colin Matthews said he does not believe that the CC has set out compelling evidence to support its view that selling Stansted as well as Gatwick will increase competition, and remain concerned that its proposed remedies may actually delay the introduction of new runway capacity.
He said: "In Scotland, the Commission has not provided any substantial evidence to support its view that Edinburgh and Glasgow would compete under separate ownership, and we believe there is no justification for specifying which of these airports should be sold.
"We will continue to make our case to the Competition Commission."
(CD/JM)
It also proposes to introduce measures to ensure that investment and levels of service at Heathrow, and possibly Gatwick and Stansted, meet more effectively the needs of airlines, passengers and other airport users. At Aberdeen airport, it is proposing measures to promote investment linked to rebates on charges.
The CC also intends to make recommendations to the Government on a more effective, and ultimately more flexible, system of airport regulation and also on aspects of government airports policy.
Christopher Clarke, Chairman of the BAA Airports inquiry, said: "Having provisionally identified competition problems at each of BAA's seven airports, we are proposing remedies which address them directly and comprehensively through a combination of divestment and other measures to improve investment and levels of service.
"The most effective way to introduce competition in the South-East and in lowland Scotland is to require the three London airports and the two principal Scottish airports to be separately owned. Hence we are proposing the sale of Gatwick, Stansted and Edinburgh airports to new independent owners with the operating capabilities and financial resources to develop each of them as effective competitors."
However, BAA Chief Executive Colin Matthews said he does not believe that the CC has set out compelling evidence to support its view that selling Stansted as well as Gatwick will increase competition, and remain concerned that its proposed remedies may actually delay the introduction of new runway capacity.
He said: "In Scotland, the Commission has not provided any substantial evidence to support its view that Edinburgh and Glasgow would compete under separate ownership, and we believe there is no justification for specifying which of these airports should be sold.
"We will continue to make our case to the Competition Commission."
(CD/JM)
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19 March 2009
CC Orders BAA To Sell Two Airports
The Competition Commission (CC) has ordered BAA to sell both Gatwick and Stansted as well as either Edinburgh or Glasgow. In its final report on BAA's ownership of seven UK airports, the CC also stipulates that BAA must sell all three airports within two years.
CC Orders BAA To Sell Two Airports
The Competition Commission (CC) has ordered BAA to sell both Gatwick and Stansted as well as either Edinburgh or Glasgow. In its final report on BAA's ownership of seven UK airports, the CC also stipulates that BAA must sell all three airports within two years.
20 August 2008
Commission Urges BAA To Sell Three Airports
BAA is being urged to sell three of its seven airports because of concerns about its dominance in the market. The Competition Commission (CC) is recommending that the airport operator should have to sell two of its three airports in the south east: Heathrow, Gatwick and Stansted.
Commission Urges BAA To Sell Three Airports
BAA is being urged to sell three of its seven airports because of concerns about its dominance in the market. The Competition Commission (CC) is recommending that the airport operator should have to sell two of its three airports in the south east: Heathrow, Gatwick and Stansted.
22 April 2008
Competition Commission Questions BAA Role
The Competition Commission has ruled that the British Airports Authority's (BAA) possession of several UK airports may not be in the "interests of either airlines or passengers". While the commission has not reached any decision it is expected that it will call for BAA to sell one or more of its seven airports in its August report.
Competition Commission Questions BAA Role
The Competition Commission has ruled that the British Airports Authority's (BAA) possession of several UK airports may not be in the "interests of either airlines or passengers". While the commission has not reached any decision it is expected that it will call for BAA to sell one or more of its seven airports in its August report.
03 July 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.
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.
18 September 2008
Competition Rules To Change For Banking Merger
Legislation is to be modified to make-way for one of the biggest banking mergers in recent times. The Chancellor has confirmed the Government will amend current competition laws to allow the merging of Lloyds TSB and HBOS. Alistair Darling said the move would go ahead in the interest of UK financial stability.
Competition Rules To Change For Banking Merger
Legislation is to be modified to make-way for one of the biggest banking mergers in recent times. The Chancellor has confirmed the Government will amend current competition laws to allow the merging of Lloyds TSB and HBOS. Alistair Darling said the move would go ahead in the interest of UK financial stability.
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