This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7951377.stm
The article has changed 11 times. There is an RSS feed of changes available.
| Version 4 | Version 5 |
|---|---|
| Regulator orders sale of airports | Regulator orders sale of airports |
| (20 minutes later) | |
| The Competition Commission has confirmed the break-up of airports operator BAA and ordered the sale of Gatwick and Stansted. | The Competition Commission has confirmed the break-up of airports operator BAA and ordered the sale of Gatwick and Stansted. |
| In the final report of its two-year investigation, the commission also told BAA that it must also sell either Edinburgh or Glasgow airport. | In the final report of its two-year investigation, the commission also told BAA that it must also sell either Edinburgh or Glasgow airport. |
| It has looked into BAA's dominance over airports in Scotland and the south-east of England; BAA owns a total of seven. | It has looked into BAA's dominance over airports in Scotland and the south-east of England; BAA owns a total of seven. |
| BAA responded to the findings by saying the commission's analysis was "flawed". | BAA responded to the findings by saying the commission's analysis was "flawed". |
| Increasing competition | Increasing competition |
| In its provisional decision published in December, the commission said the lack of competition between airports owned by BAA was detrimental to passengers. | In its provisional decision published in December, the commission said the lack of competition between airports owned by BAA was detrimental to passengers. |
| 2008 PASSENGER NUMBERS AT BAA AIRPORTS Heathrow: 66.9 millionGatwick: 34.2 millionStansted: 22.3 millionEdinburgh: 9.0 millionGlasgow: 8.1 millionAberdeen: 3.3 millionSouthampton: 2.0 million Source: BAA annual report | 2008 PASSENGER NUMBERS AT BAA AIRPORTS Heathrow: 66.9 millionGatwick: 34.2 millionStansted: 22.3 millionEdinburgh: 9.0 millionGlasgow: 8.1 millionAberdeen: 3.3 millionSouthampton: 2.0 million Source: BAA annual report |
| The regulator has ordered that the airports be sold within two years. | The regulator has ordered that the airports be sold within two years. |
| The airports must also be sold in sequence, starting with Gatwick, followed by Stansted, and then finally either Edinburgh or Glasgow to ensure an orderly sale process. | |
| The sale of Gatwick is already under way and possible buyers are being vetted. | The sale of Gatwick is already under way and possible buyers are being vetted. |
| The regulator said its move was the "only way to address comprehensively the detriment to passengers and airlines from the complete absence of competition between BAA's south-east airports and between Edinburgh and Glasgow". | The regulator said its move was the "only way to address comprehensively the detriment to passengers and airlines from the complete absence of competition between BAA's south-east airports and between Edinburgh and Glasgow". |
| The sale of these airports will "kick-start a process of competitive rivalry from a standing start where today there is no competition at all," it added. | The sale of these airports will "kick-start a process of competitive rivalry from a standing start where today there is no competition at all," it added. |
| Christopher Clarke, chairman of the enquiry, said the move should bring substantial benefits to passengers and airlines. | |
| And regarding Heathrow, where BAA will continue to have a substantial market power, the authority recommended improved consultation between BAA and the airlines. | |
| BAA said it accepted the need to change, and having reorganised to improve customer service and started the sale of Gatwick, "was already changing". | |
| But it said it thought "the remedies might be impractical in the current economic climate". | |
| Falling profits | |
| BAA, which was acquired by Spanish firm Ferrovial in 2006 for £10bn, has seen profits hit by the downturn. | |
| Last month, BAA said a fall in passenger numbers had dented its 2008 profits, which declined by 18.4% from the year earlier. | |
| It reported a profit of £582m before tax and interest, down from £713m in 2007, as 2.7% fewer travellers went through its seven UK airports. |