BAA To Sell Gatwick And Stansted

Airport owner BAA is to be forced to sell both Stansted and Gatwick airports after failing to persuade the Competition Commission that it should be allowed to sell just one of its London hubs.

The Commission today released a report confirming that BAA would be required to sell both airports as well as Edinburgh or Glasgow. The decision is however, subject to final consultation, with a final report due by the watchdog in February or March next year. BAA had originally accepted it was likely to have to sell Gatwick, but the news that they will also lose Stansted is a bitter blow.

Colin Matthews, chief executive of BAA expressed his disappointment at the decision: "We do not believe that (the Competition Commission) has set out compelling evidence to support its view that selling Stansted as well as Gatwick will increase competition and we remain concerned that its proposed remedies may actually delay the introduction of new runway capacity".

"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."

The Commission has also vowed to introduce certain measures to ensure that levels of investment and service at Heathrow were improved. Christopher Clarke, chairman of the inquiry, said:

"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. Under the common ownership of BAA, there is no competition. Under separate ownership, the airport operators, including BAA, will have a much greater incentive to be far more responsive to their customers, both airlines and passengers."