CAA backs forced BAA airport sell off
26.09.08
The UK's aviation regulator yesterday expressed strong support for the break-up of BAA, the UK airports operator, and urged the sale of two of its airports in London and one in Scotland. The Civil Aviation Authority (CAA) said a break-up of BAA could be expected to increase competition ‘significantly’ between airports in the south-east of England and between airports in Scotland ‘to the benefit of passengers, airlines and the wider economy’.
Last month the Competition Commission published an initial report on BAA and proposed it should sell two of its London airports, probably Gatwick and Stansted, and either Glasgow or Edinburgh. In its response to the report, the CAA said the case for a break-up was stronger than the one argued by the Commission, which had said there was potential for significantly more competition as new runways were added.
The CAA said: ‘Even without additional runway capacity, independent airports can be expected to compete by offering better service quality, better prices and by seeking innovative ways to use their assets.'
It urged the Commission to ‘reject BAA's argument that airports cannot compete when their runways are full’. Harry Bush, CAA group director for economic regulation, said: ‘Competition in the short term - even between airports with busy runways - can be expected to deliver significant benefits to passengers and airlines.'
Add to: del.icio.us | Digg it | Newsvine | NowPublic | Reddit
To book hotel gatwick or parking gatwick at the lowest price, click on these links to two great gatwick parking and gatwick hotels price comparison pages.
