BAA must sell three UK airports

(20 August 2008)

The British Airports Authority will have to sell three of its seven UK airports because of its unfair market dominance, the Competition Commission has said.

The airport operator has been told it will have to sell two of its three London airports – Heathrow, Gatwick and Stansted.

The regulator also recommended that BAA sell one of either Glasgow or Edinburgh airport in order to promote competition and improve services.

The Competition Commission report said that BAA had shown a 'lack of responsiveness' to the needs of airlines and a 'lack of initiative' in improving capacity.

BAA Chief Executive Colin Matthews said the company had 'no intention' of selling Heathrow, and that the break-up of the airports could threaten efforts to build new runways in London.

The final decision on the company's future will be taken in April next year.