The long running saga of the Competition Commission’s legal tussle with UK airport owner BAA moved a further step onwards today, writes John Barrington-Carver.
In line with the Commission’s original ruling, BAA has again been ordered to sell Stansted airport and either Glasgow or Edinburgh airports. Meantime BAA has sold Gatwick in compliance with the original ruling.
They are legally unable to go to the High Court again to challenge the Competition Commission latest ruling. However, BAA now claims that the economy and airport business has changed substantially since the original ruling in early 2009 and will seek a judicial review claiming they must protect the interests of their shareholders.
Cheapflights has always supported the reduction of the number of airports owned by BAA, believing that competition between airports to be in the best interests of consumers. Well-funded new owners are able to invest in infrastructure and systems to upgrade the user experience of passing through the airport.
In Gatwick’s case this has meant the start of a £1 billion capital investment programme – already resulting in the reduction of the average time taken to pass through security which is now two minutes. In addition, a quick and convenient connection on Gatwick’s new inter terminal shuttle opened in July 2010.
BAA’s reluctance to sell Stansted may be because it has not enjoyed the upturn in passenger numbers that most of the UK’s other airports have.
According to the CAA Stansted’s share of UK airport traffic was down by 8.8 per cent in 2010 traffic and its June 2011 traffic declined by 3.3 per cent on the previous June. That fact is likely to impact on the sale price BAA might be able to achieve and probably lies behind the reason for BAA seeking a judicial review.
(Image: HerryLawford)
