The UK Competition Commission today ordered BAA to sell three of its airports in Britain.
In its final report into the airport operator, the Competition Commission (CC) 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 commission, which has been investigating BAA for two years, said the airports will have 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 commission 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,' he added.
BAA said it would consider today's report carefully before deciding how to respond.
'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,' BAA said.
The Stansted Airline Consultative Committee, which has been a long-term critic of the airports operator, and counts Ryanair as one of its members, welcomed the move and said: 'Passenger numbers at Stansted are in freefall, driven downwards by high airport charges and BAA monopoly indifference. The airlines can reverse this trend if new owners deliver what airlines and their passengers need - efficient facilities and lower costs.'