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London airports should be sold on competition grounds, says watchdog
Posted: 20 August 2008 1520 hrs

 
 
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LONDON: Britain's Competition Commission on Wednesday recommended the sale of three airports, two in London and one in Scotland, that are operated by Spanish-owned group BAA, owing to the company's dominance.

Following an investigation, the CC said it was seeking views on which two of London's Heathrow, Gatwick and Stansted airports should be sold.

After the period of consultation, the CC would also decide which of Edinburgh and Glasgow airports in Scotland should be relinquished by BAA.

BAA runs seven airports across Britain, so is effectively being forced to lose almost half of its portfolio and two of its biggest hubs.

"The Competition Commission has provisionally found that there are competition problems at each of BAA's seven UK airports (Heathrow, Gatwick, Stansted and Southampton in England, and Edinburgh, Glasgow and Aberdeen in Scotland) with adverse consequences for passengers and airlines," the CC said in a statement.

"A principal cause is their common ownership by BAA. There are also competition problems arising from the planning system, aspects of government policy and the system of regulation."

The commission added: "The CC is now seeking views on which two of BAA's three London airports should be sold and similarly which of Edinburgh or Glasgow airports should be sold."

The CC said that it would publish its final recommendations during the first quarter of 2009.

- AFP/yb

 

 



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