Heathrow Terminal 5

Heathrow Terminal 5

Competition Commission rules on BAA

20-Aug-08

BAA may have to sell three of its airports, according to The Competition Commission's (CC) provisional findings.

There are competition problems at each of BAA's seven UK airports with adverse consequences for passengers and airlines, the CC ruled.
BAA owns and runs seven UK airports, including Heathrow, Gatwick, Stansted, Southampton, Edinburgh, Glasgow and Aberdeen.
If the CC's proposed remedies are implemented, the operator will be forced to sell two of its London airports, and either Edinburgh or Glasgow airport.
The final report will be published in the first quarter of 2009.

A NEED TO WORK TOGETHER

David Speakman, founder and chairman of Travel Counsellors, told Luxury Travel: "Whilst the whole industry should be pleased that BAA should be broken up it is only the start of the process.What the industry needs like a hole in the head is another doppelganger doing the same, trying for the same return on investment and treating the customer with the same disdain as BAA have becomes experts at."
The Civil Aviation Authority needs to police standards, he said.
"There is a need for a step change in the industry where airlines and airports alike, including the government agencies, show how they can work together and create an efficient and pleasant airport experience," Speakman added.
"There needs to be pride taken in delivering a great customer service in a pleasant manner, rather than hiding behind 'do not abuse the staff' signs."

COMPETITION ISSUES

Christopher Clarke, chairman of the BAA Airports inquiry group, said significant competition problems were "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.
"This has resulted in investment that is not tailored to the requirements of airport users and lower levels and quality of service for both airlines and passengers."
However, Colin Matthews, BAA's chief executive, said: "The CC's findings should be assessed in the light of the urgent need for new airport capacity and a modern regulatory framework, as well as the need - which we recognise - for improved service from the airport operator."
www.baa.com; www.competition-commission.org.uk