BAA challenge Competition Commission’s airport break up ruling
18.05.09
BAA has announced that it will appeal against the decision by the Competition Commission that it should sell three airports. The commission told BAA in March that it must sell Gatwick and Stansted, plus either Edinburgh or Glasgow airport. It also set out a timetable for the sales. However, BAA has been struggling to get good value for Gatwick, a sale that was already underway at the time the ruling was made, and has now decided to appeal the ruling.
BAA said that the Commission's ruling failed to take into account the tough economic conditions against which the sales would have to take place. The company also said it is appealing on the grounds of apparent bias, saying in a statement: ‘This is because of links between a member of the Competition Commission panel and an organisation interested in acquiring the airport that BAA is required to sell.'
The BBC suggests that BAA has raised questions about Professor Peter Moizer, one of six Competition Commission panelists involved in the inquiry into UK airports. He is an adviser to the Greater Manchester Pension Fund - which is part of a consortium bidding to buy Gatwick Airport. He resigned from the Competition Commission panel two weeks before the report was published.
The appeal will be heard by the independent Competition Commission Tribunal, chaired by Sir Gerald Barling QC. The process will almost certainly delay the sale of BAA's three airports, which should help the company even if it is unsuccessful. The Competition Commission said it would defend its case vigorously.
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