Competition watchdog to look at UK airports
BAA’s dominance of the UK airports sector was under review today as part of a look into whether the market works well for travellers.
The British Office of Fair Trading (OFT) said it is studying the airports sector to see if a full-blown review is required. It is likely to make an announcement by late June on the scope of any subsequent investigation.
BAA owns and operates airports which handled 63% of air passengers beginning or ending their journey in the UK in 2005. In the London area, where BAA has Heathrow, Stansted and Gatwick, the figure rises to 92%, while in Scotland the rate is 86% because of Glasgow, Aberdeen and Edinburgh airports.
The review, which the OFT said was part of its ongoing role to keep an eye on key markets, comes as BAA attempts to fend off a £8.75bn (€12.8bn) takeover approach from Spanish infrastructure company Ferrovial.
OFT chief executive John Fingleton said his organisation constantly looked proactively at whether markets work well for consumers.
He added: “Competition in air transport is an extremely important part of the UK economy, with a significant impact on UK consumers and business alike.
“For these and other reasons, we have decided to look more closely at how the airport markets work with the aim of establishing whether the current market structure delivers best value for air travellers.”
