News: Competition watchdog recommends break up of BAA monopoly
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Flights > News > # 1865 (20/08/2008)
BAA could be forced to sell two of its three London airports because of concerns about its market dominance, the Competition Commission has said.
The watchdog is also recommending that BAA sells either Edinburgh or Glasgow airport.
In a preliminary report, the commission, which conducts inquiries into the regulation of markets, said there were competition problems at each of BAA’s seven UK airports “with adverse consequences for passengers and airlines”.
BAA has been fiercely criticised by airlines and passengers for poor customer service and delays at its airports, particularly Heathrow.
The commission said many of the problems of recent years were due to the "common ownership" of Heathrow, Gatwick and Stansted, which account for nearly 90% of departures and arrivals into London.
BAA will have to give up ownership of Gatwick and Stansted as the commission made it clear that it was “unlikely to require the sale of Heathrow unless the sale of Gatwick or Stansted is likely to be impractical or ineffective”.
BAA described the regulator's verdict as "flawed" and said the forced sale of leading airports would be "counter-productive". A final decision on its airport ownership is expected in April.
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