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BAA may be forced to sell off one of its key airports
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09 August 2007
The airport operator - which runs Heathrow, Gatwick and Stansted - has been accused of presiding over abysmal delays and poor service.
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Chaos: The sale of Gatwick could help to prevent scenes like this at London airports
Yesterday competition watchdogs began an investigation into whether its stranglehold on the South-East constitutes a monopoly that leaves passengers forced to put up with shoddy service.
If it decides it does, BAA will almost certainly be forced to sell Gatwick or Stansted to a competitor.
The Competition Commission will also consider whether it would make sense for competing companies to run separate terminals at airports.
British Airways, Ryanair and bmi yesterday led calls for the Spanish-owned operator to be broken up.
BAA's three London air hubs handle 89 per cent of the South-East's passengers.
The firm also runs Glasgow, Aberdeen and Southampton.
BA chief executive Willie Walsh said this was the "root cause" of problems. Bmi meanwhile warned Heathrow's reputation had been "trashed".
Even BAA bosses admitted the passenger experience at Heathrow was "unsatisfactory" but asked the Commission not to force a sell-off.
Watchdogs said they had been inundated with complaints about BAA which had been blamed for bringing international shame on Britain.
The Competition Commission will also consider whether it would make sense for competing companies to run with complaints about BAA which has been blamed for bringing international shame on Britain.
The Commission is also investigating criticisms that BAA is harming passengers' interests by:
charging car-park bus operators to pick up and set down passengers
charging taxis too much to use airport stands
restricting competition and charges for coach and bus operators
refusing to stock some alcoholic drinks in its 'World Duty Free' shops.
The matter was referred to the Commission by the Office of Fair Trading which had "reasonable grounds" to suspect BAA's market shares in the South-East of England and Lowland Scotland 'combine to prevent, restrict or distort competition'.
BAA yesterday blamed congestion and delay problems on a lack of terminal and runway capacity.
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