BAA will almost certainly be forced to sell three of its UK airports, including Gatwick and Stansted, following a provisional report today by the UK Competition Commission.
The commission confirmed that, subject to final consultation, it would require the Spanish-owned airport operator to sell Gatwick and Stansted, outside London, as well as Edinburgh Airport.
The watchdog, which will publish a final report in the next few weeks, said it also proposed to introduce measures to ensure investment and services levels at Heathrow improved for airlines and passengers.
BAA, which has been under fire for many months for poor performance, runs seven UK airports, including Heathrow.
Christopher Clarke, who is chairing the commission's inquiry into BAA airports, said separate ownership of the three main London airports and the two main Scottish ones was the most effective way to introduce competition in south east England and lowland Scotland.
BAA also runs Southampton, Glasgow and Aberdeen Airports in the UK.
The Competiton Commission also intends to make recommendations to the Government on a more effective, and ultimately more flexible, system of airport regulation and also on aspects of Government airports policy.