British competition authorities on Thursday ordered Spanish-owned airports operator BAA to sell Londons Gatwick and Stansted airports, as well as Edinburgh or Glasgow, within the next two years. The Competition Commission (CC) said in a landmark ruling that BAA, which is owned by Spanish construction group Ferrovial, must sell three of its seven air hubs in Britain to prevent the operator having a dominant market position.
BAA slammed the ruling, arguing the analysis was "flawed" and the conclusions "impractical" amid dire economic conditions in recession-hit Britain. Airlines welcomed the decision, however. "The CC will require BAA to sell both Gatwick and Stansted as well as either Edinburgh or Glasgow," the watchdog said in a statement. "In its final report on BAAs ownership of seven UK airports... the CC also stipulates that BAA must sell all three airports within two years."
Gatwick, largely used for charter flights, is the second-biggest airport in Britain after Heathrow near London, and is the 10th-busiest in the world, according to the official Gatwick website. The CC, which had already revealed the findings in a provisional report published in December, added that BAAs airports ownership prevented competition. "The report finds competition problems with adverse effects for both passengers and airlines at all seven of BAAs UK airports," the CC said.
"A key problem at BAAs airports in the south-east (of England) and in lowland Scotland is common ownership which precludes any competition between them." BAA was bought in 2006 by a consortium led by Spanish construction group Ferrovial for 10.23 billion pounds. According to recent CC data, BAA holds a 60 percent market share of all passengers passing through British airports. The figure climbs to 90 percent around London. BAA, which was privatised in 1987, owns and operates Heathrow, Gatwick, Stansted and Southampton airports in England, as well as Edinburgh, Glasgow and Aberdeen in Scotland.
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