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BAA ordered to sell UK airports

Gatwick Airport - Sale ordered
Gatwick Airport - Sale ordered

The Competition Commission has ordered BAA, Britain’s main airport operator, to sell three of its airports.

In its final report on the airport company, the Competition Commission said Spanish-owned BAA had to dispose of Gatwick and Stansted airports as well as either Glasgow or Edinburgh airport within two years.

BAA, heavily criticised for the standard of services at its seven UK airports, has already put Gatwick up for sale.

The CC, which has been investigating BAA for two years, said the airports will have to be sold in sequence, beginning with Gatwick, then Stansted, followed by either Edinburgh or Glasgow.

BAA also runs Heathrow, Southampton and Aberdeen airports.

‘We are confident that the sale of these airports will bring substantial benefits to passengers and airlines,’ said Christopher Clarke, who chaired the CC inquiry.

‘We expect that the new airport owners, with the operating capabilities and financial resources to develop them as effective competitors, will have a much greater incentive than BAA to be more responsive to their customers.’

BAA said it would consider the CC report carefully before deciding how to respond.

The company said: ‘We accept the need to change and, having re-organised to improve customer service and having initiated the sale of Gatwick, BAA is already changing.

‘However, we believe the Commission's analysis is flawed and its remedies may be impractical in current economic conditions.’