@goafan,FlyIce
BAA referred to UK Competition Commission for investigation
Monday April 2, 2007
The UK Office of Fair Trading officially referred BAA, operator of seven UK airports including London's Heathrow, Gatwick and Stansted, to the country's Competition Commission for a formal antitrust investigation that could lead to the forced sell-off of one or more airports.
OFT made a preliminary finding in December that BAA's substantive holdings in the UK, where more than 60% of air travelers and 90% of London passengers fly through an airport controlled by the operator, warranted an inquiry (ATWOnline, Dec. 13, 2006). More than three months of "public consultation" led OFT to the "view that the competition concerns. . .remain valid and that an investigation by the CC is now warranted." The investigation could last for up to two years.
Ryanair praised the referral, calling for "an end [to] monopoly abuse by the BAA, which has resulted in inadequate facilities and excessive passenger charges at the London airports in particular." EasyJet Planning Director Andrew Barker added that the referral "clearly demonstrates that there is a problem with the running of our major airports." Virgin Atlantic Airways said it hoped the investigation would lead to "major changes" in the way UK airports are owned and operated.
BAA CEO Stephen Nelson said he welcomed a "thorough, unbiased and rigorous review of the UK airport market and airport charges," asserting that the investigation will show that BAA is best suited to modernize and manage UK airports. "We are ready to make major, long-term investments in British airports that will free the traveling public from congestion and provide a good experience at our airports, all for a few extra pounds per passenger," he said. "But to achieve this, we need a strong and united BAA."
by Aaron Karp
ATWOnline
BAA referred to UK Competition Commission for investigation
Monday April 2, 2007
The UK Office of Fair Trading officially referred BAA, operator of seven UK airports including London's Heathrow, Gatwick and Stansted, to the country's Competition Commission for a formal antitrust investigation that could lead to the forced sell-off of one or more airports.
OFT made a preliminary finding in December that BAA's substantive holdings in the UK, where more than 60% of air travelers and 90% of London passengers fly through an airport controlled by the operator, warranted an inquiry (ATWOnline, Dec. 13, 2006). More than three months of "public consultation" led OFT to the "view that the competition concerns. . .remain valid and that an investigation by the CC is now warranted." The investigation could last for up to two years.
Ryanair praised the referral, calling for "an end [to] monopoly abuse by the BAA, which has resulted in inadequate facilities and excessive passenger charges at the London airports in particular." EasyJet Planning Director Andrew Barker added that the referral "clearly demonstrates that there is a problem with the running of our major airports." Virgin Atlantic Airways said it hoped the investigation would lead to "major changes" in the way UK airports are owned and operated.
BAA CEO Stephen Nelson said he welcomed a "thorough, unbiased and rigorous review of the UK airport market and airport charges," asserting that the investigation will show that BAA is best suited to modernize and manage UK airports. "We are ready to make major, long-term investments in British airports that will free the traveling public from congestion and provide a good experience at our airports, all for a few extra pounds per passenger," he said. "But to achieve this, we need a strong and united BAA."
by Aaron Karp
ATWOnline
