Millions of passengers could soon be enjoying cheaper flights from the UK as a plan to break up BAA moved a step closer today. The Competition Commission announced their 'emerging thinking' on a pending investigation into BAA’s monopoly of London’s airports by admitting that the airport owner “may not be serving well the interests of either airlines or passengers”.
The Commission may force BAA to sell one of its seven airports, with Gatwick the most likely. A move that would mean a rival firm could compete with Heathrow and make reductions to fares on popular routes. Low-cost airlines could also break into the trans-Atlantic market which would lower fares between the UK and US.
The proposed move is supported by many low cost carriers including easyJet and Flybe. easyJet chief executive Andy Harrison said it was “a major step in the right direction”, whilst Mike Rutter, commercial officer of Flybe believed the time was right for BAA to begin its sale now:
“We have been saying for years that the BAA monopoly is bad for the consumer, and at last the Competition Commission has come to the same conclusion…Rather than wait for the inevitable forced sell-off, we are calling for (BAA’s owner) Ferrovial to start to divest itself of at least three airports.”
Any action however, is unlikely until August, when the Commission releases its next report. BAA’s chief executive Colin Matthews was sceptical of the merits of a forced sell-off: “The case they need to make is that new ownership will deliver investment more effectively. I’m not convinced that’s the case.”
Other low cost airlines to offer support to the Commissions' early findings include Ryanair and Bmi, whilst the Association of British Travel Agents (ABTA) are also backing the move. ABTA head of policy and communications David Marshall said: “ABTA welcomes the Competition Commission’s interim report into the common ownership of BAA’s seven airports in the UK.
“ABTA has previously made representations to the Government that there should be adequate airport capacity, particularly in the South-East of England, and today’s report suggests that common ownership could be one of the main obstacles to increased capacity.
“ABTA also endorses the Competition Commission’s concerns that there appears to be a lack of responsiveness to the differing needs of airline customers and passengers, again this is an issue which ABTA has raised with Government.
