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| BAA could challenge airport sale | |
| (about 3 hours later) | |
| BAA has said it may appeal against the decision by the Competition Commission ordering the break-up of airports by selling Gatwick and Stansted. | |
| In its final report of a two-year enquiry, the commission told BAA that it must also sell either Edinburgh or Glasgow airport. | |
| The commission looked into BAA's dominance over airports in Scotland and the south-east of England. | |
| 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". |
| Colin Matthews, chief executive of BAA, said it might have to challenge the decision since selling three of its seven UK airports in this economic climate could be impractical. | |
| "We've been improving customer service across all airports," he said. | |
| "[But] we've got a long way to go." | |
| Improved consultation | Improved consultation |
| 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. |
| Selling airports in a recession in like trying to sell a house while its on fire Tom Symonds, BBC transport correspondent class="" href="/1/hi/business/7952573.stm">Selling airports will not be easy class="" href="/1/hi/scotland/7952331.stm">Q&A: Impact on passengers | |
| 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 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. |
| And regarding Heathrow, where BAA will continue to have a substantial market power, the authority recommended improved consultation between BAA and the airlines. | And regarding Heathrow, where BAA will continue to have a substantial market power, the authority recommended improved consultation between BAA and the airlines. |
| Customer service | Customer service |
| 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". |
| FROM THE TODAY PROGRAMME More from Today programme 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. | FROM THE TODAY PROGRAMME More from Today programme 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. | Christopher Clarke, chairman of the enquiry, said the move should bring substantial benefits to passengers and airlines. |
| Paul Charles, a spokesperson for Virgin Atlantic, told the BBC that Thursday's decision could lead to cheaper fares in the long term. | Paul Charles, a spokesperson for Virgin Atlantic, told the BBC that Thursday's decision could lead to cheaper fares in the long term. |
| "If there is decent competition the prices will come down," he said. | "If there is decent competition the prices will come down," he said. |
| But not everyone agrees. | But not everyone agrees. |
| "It will do nothing for the consumer," said Paul Whelan, head of industry body the Small to Medium Airports Group. | "It will do nothing for the consumer," said Paul Whelan, head of industry body the Small to Medium Airports Group. |
| "There are a lot of airlines including Ryanair using Edinburgh and it is doing a good job, while Stansted has also been good for airlines," he said. | "There are a lot of airlines including Ryanair using Edinburgh and it is doing a good job, while Stansted has also been good for airlines," he said. |
| Falling profits | Falling profits |
| BAA, which was acquired by Spanish firm Ferrovial in 2006 for £10bn, has seen profits hit by the downturn. | 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. | 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. | 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. |
| BAA has two months to respond to the findings. | BAA has two months to respond to the findings. |