Regulator to order airports sale

Mar 19, 2009

The Competition Commission is expected to confirm the break-up of airports operator BAA by ordering the sale of Gatwick and Stansted airports.

In the final report of its two-year investigation to be published on Thursday, it will also require the sale of one of BAA's Scottish airports.

It has been looking into BAA's dominance over airports in Scotland and the south-east of England.

The regulator has already begun to vet potential bidders for Gatwick.

In its provisional decision published in December, the commission said the lack of competition between airports owned by BAA was detrimental to passengers.

It concluded that BAA, which also owns Heathrow, should sell Gatwick and Stansted airports in the south-east of England.

It also said Edinburgh airport should be sold, although it invited further views on this. BAA also operates Glasgow and Aberdeen airports.

Last month, BAA said a fall in passenger numbers dented its 2008 profits. It fell by 18.4% as the economic downturn dented passenger numbers.

It reported an profit of £582m before tax and interest, down from £713m in 2007, as 2.7% fewer travellers went through its seven UK airports.

Source: BBC