Britain's consumer affairs watchdog said today that it would refer BAA's UK airports to competition authorities, paving the way for a possible break-up of the ownership of London's key airports.
The Office of Fair Trading said it planned to refer the matter to the Competition Commission after saying it found evidence of poor customer satisfaction and the need for more competition to reduce costs.
'There is evidence of poor quality and high charges - BAA's investment plans, which are of great importance to the UK, have raised significant concerns among its customers,' OFT Chief Executive John Fingleton said in a statement.
The OFT recommendation, flagged by a source familiar with the situation last week, had been expected.
The watchdog will invite final comments before making a final conclusion. However, it opens the door for a full inquiry by the Competition Commission into the BAA airports which may or may not lead to a break-up.
BAA owns seven UK airports, including London's Heathrow, Gatwick and Stansted which handle 90% of passenger traffic in south-east England.
British Airways and other airlines have called on competition authorities to break up the airports because of concern about regulation. BAA has said a break-up would undermine vital investment in airport capacity.
The OFT also recommended that the airports regulator advise the UK government on the case for the de-regulation of Manchester airport.
