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Report to recommend BAA shake-up

Gatwick - Likely to be sold off
Gatwick - Likely to be sold off

A major shake-up of the ownership of some of the UK's biggest airports is expected to be announced tomorrow.

In a preliminary report, the UK's Competition Commission (CC) is likely to recommend a break up of airport operator BAA's 'monopoly' of south east England airports which comprise Heathrow, Gatwick and Stansted.

The commission will also give its views on BAA's ownership of its four other UK airports - Southampton, Edinburgh, Glasgow and Aberdeen.

In an 'emerging thinking' document published in April this year, the CC said that BAA's common ownership of the UK airports 'may not be serving well the interests of either airlines or passengers'.

Last weekend, BAA chairman Nigel Rudd said he expected the commission to recommend the sell-off of Gatwick or Stansted - or both - together with one of his company's Scottish airports.

It is believed that a number of international firms are interested in taking over Gatwick should BAA be forced to end its stewardship of the airport.

One of the possible buyers could be the UK's Manchester Airport Group which runs Manchester, East Midlands, Bournemouth and Humberside airports.

The report, which will be followed by a final report expected before the end of the year, comes at a time of mounting criticism of Spanish-owned BAA.

The company has had to bear the brunt of passenger and political ire during a period where increased customer numbers, stricter baggage regulations, continuous computer glitches and the disastrous Heathrow Terminal 5 opening have combined to the detriment of the airport travelling experience for millions.

In its April report, the CC said it had concerns about BAA's 'apparent lack of responsiveness to the differing needs of its airline customers, and hence passengers'.

It added that there were also worries about 'BAA's approach to the system of planning airport development'.

Rudd said that any break-up of the BAA UK airport empire would not be a disaster for the company but said a break-up would do little to increase competition at Heathrow, the UK's biggest and most important airport.

He stressed that Heathrow did not compete with Gatwick or Stansted or with non-BAA airports such as Luton or Manchester, but competed with the likes of Paris Charles de Gaulle and Amsterdam's Schipol airport.