Airlines cheer break-up of BAA monopoly

Monday, 20 Jul, 2011 0

Airlines have expressed relief at the imminent breakup of airports operator BAA, saying that it will lead to better and cheaper services for passengers.

The Competition Commission has ordered the Spanish-owned operator to sell Stansted and either Glasgow or Edinburgh airport. It said the sale of Stansted would begin in three months' time, followed by the sale of one of the two Scottish airports.

However, Ryanair has urged the Government to force an early sale of Stansted and Glasgow or Edinburgh to prevent BAA from further delaying the break up of its business.

The airline said in a statement that it hoped "this latest confirmation of the Competition Commission's original decision (in August 2008) will finally end the BAA monopoly’s policy of using its legal stratagems to delay this sale". It accused BAA of overcharging airlines at Stansted "to generate excess monopoly profits, while losing more routes and traffic".

Ryanair claimed that over the past five years BAA has doubled airline charges at Stansted while its passenger traffic has fallen from 24million to 18m. This year seven airlines have cut their services from the Essex airport, according to Ryanair.

In a considerably more muted response, easyJet said it hoped a change of ownership would lead to a better experience for air passengers using the airports.

EasyJet's UK director Paul Simmons said: "The sale of Stansted and either Glasgow or Edinburgh should encourage more timely, well designed and cost effective investment, which will improve service quality and lower charges.

"We look forward to a long and fruitful relationship with the new owners of these airports”.

Skyscanner also welcomed the prospect of more airport competition for the UK. Chief executive Gareth Williams said: “We’re optimistic that these additional airport sell-offs will mean better value and greater choice for travellers, which will further increase the popularity of regional airports.

"More competitive ownership means we may see more regional hubs developing, similar to easyJet’s plans for Southend, which will enable travellers to fly from closer to home at the best value prices.”

BAA, which has already sold Gatwick, said it was "dismayed" at the decision and it is considering calling for a judicial review.

By Linsey McNeill
 



 

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Linsey McNeill

Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk



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