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BAA called on to sell three airports

21st August 2008 Print
The UK Competition Commission has recommended that BAA sell three of its UK airports, Heathrow, Gatwick and Stansted, following concerns over a monopoly on the operation of airports.

The result of the watchdog's inquiry also restricted BAA from owning airports in both Glasgow and Edinburgh. BAA responded by saying that it had 'no intention' of selling the largest of the three London sites at Heathrow.

Christopher Clarke, chairman of the BAA Airports inquiry group, said that the lack of competition at BAA's seven airports was "evident from a large number of factors, including its lack of responsiveness to the needs of its airline customers and a lack of initiative in planning capacity."

The findings of the report may only be provisional – with the final decision on the company's future set for April 2009 – but were greeted with a mixed response.

BAA chief executive Colin Matthews said that the company "will continue to point out to the Commission the many areas where we believe its analysis is flawed and its remedies would be disproportionate and counter-productive."

Airlines including easyJet reacted more positively to the findings: "Today's Competition Commission report is what we have been waiting for, an honest and unbiased assessment of our airports," said chief executive Andy Harrison. "They have said what everyone knows, that our airports aren't working and that BAA and regulation aren't working."

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