Afternoon:
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News that BAA is to sell Gatwick airport should cheer travellers. The company was told last month by the Competition Commission that its near-monopoly control of London's biggest three airports worked against the public interest and that it had to sell two of them.
However, the heavily-indebted company looked likely to contest the ruling for as long as possible. That would have delayed a resolution that could bring new investment and leadership to the inadequate and sometimes chaotic service in its terminals.
The process has since been speeded up, though its outcome, and the role of Sir Richard Branson's consortium of airlines prepared to buy Gatwick, is still unclear. Stansted, BAA says, will not be sold for now.
A blast of competition between London's two biggest airports should raise standards of service for the travelling public — including performance at Heathrow, which was worse than Gatwick's. However, those concerned about environmental damage from air travel, as well as those living near Gatwick, should be on their guard.
BAA promised West Sussex County Council in 1979 not to build a second runway before 2019. But a new owner might challenge this agreement and probe the Government's readiness to look at building a second runway at Gatwick after 2019, if Heathrow does not get its controversial third runway.
Environmental groups, West Sussex and Surrey councils, and all MPs in a 20-mile radius are opposed to a Gatwick second runway, which would put serious strains on the already crowded road and railway network. And the argument that airport growth brings jobs has limited weight in a prosperous and congested part of the Home Counties.
Given the strength of opposition to a third runway at Heathrow, whoever buys Gatwick would be wrong to assume that expansion there is inevitable.
Whether it gets permission for a second runway, Gatwick's new owner must be in a position to operate successfully, with investment in good facilities for travellers including adequate rail links to keep road traffic levels down.
BAA has redeemed itself a little at Heathrow since the chaotic opening of Terminal 5. But we urgently need competition to improve passenger service at London's airports.
Lacking courage
The Prime Minister may take the view that the public's need for reassurance is so great at a time of financial market turbulence that no debate can be had about his leadership.
That was his view in a letter to David Cairns, the minister of state in the Scottish Office who resigned yesterday over the issue. But as opinion polls still show huge difficulties for Labour, the issue is hardly going to go away, even briefly.
It was the elephant in the room at yesterday's Cabinet meeting. Though no Cabinet member has yet had the courage to be quoted by name, senior figures are being increasingly open about the tensions within. The stakes for the Prime Minister's speech to conference next week are higher than ever.
As for the decision by Labour's National Executive yesterday not to send out nomination papers, as it could have done if it was genuinely committed to giving its MPs a voice, that makes matters worse. It makes the party look as though it belongs in a banana republic, not Britain.
Fashion deal
THE AGREEMENT with New York and Milan to give London a clear five days for its Fashion Week is welcome. The threat of being squeezed to only four days put London talent and jobs at risk. London Fashion Week will always have to fight for attention, but at least the new deal gives it a chance.
