Routes and Airports Channel

BAA braces for airport selloff

By Sandra Arnoult
ATW's Airports Today, March 2009, p.2

BAA is bracing for a final ruling that will force the sale of at least two, and most likely three, of its UK airports. The UK Competition Commission in December "confirmed" that it will require BAA to sell both London Gatwick and Stansted, setting the stage for a breakup of its control of London's airports for which airlines long have pushed.

"We still don't believe we should be forced to sell Stansted or one of our Scottish airports," BAA spokesperson Damon Hunt told ATW's Airports Today. "To date, we haven't been able to convince the Competition Commission of our argument. . .I guess we will find out in a few weeks." BAA already had put LGW up for sale in anticipation of the ruling.

The decision, which followed earlier CC provisional reports that pointed toward the breakup, is subject to "final consultation" but is almost certain to be issued formally this month. It also calls for BAA to sell Edinburgh. The airports operator, a subsidiary of Grupo Ferrovial, will be allowed to retain Heathrow and three other UK airports. In addition to Gatwick it controls Heathrow, Stansted, Southampton, Aberdeen, Edinburgh and Glasgow.

Meanwhile, plans for a second runway at Stansted have been placed on hold in response to an 11.2% drop in passengers in 2008 as well as ongoing legal challenges from opponents to the expansion project. BAA sent a letter to the opponents saying it would delay the project for two years, pushing the completion date to 2017.

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