BA calls for BAA break up
British Airways is calling for a break up of ‘monopoly’ airports operator BAA.
The airline today called on the Office of Fair Trading to refer its study on the UK airports’ market to the Competition Commission due to concerns about airport regulation and ownership.
BA says that separate ownership of BAA-owned Heathrow and London Stansted airports should be considered by the Competition Commission. The carrier believes that decisions on new runway construction in South East England should not be concentrated in the hands of one company.
In the event of a break-up of BAA, BA says that there will be a continued need for strong regulation to protect users against monopoly power, particularly at Heathrow and Gatwick.
The airline believes that there should be increased competition within London airports and is proposing that competitive tendering is introduced for a wider range of services at airports such as providing IT systems.
It wants improvements to the regulatory framework governing BAA’s London airports such as the introduction of a licence. This would enable the Civil Aviation Authority to enforce service quality guarantees as is the case with some utility companies.
In its response to the Office of Fair Trading’s consultation into the UK airports’ market, the airline says the Competition Commission should recommend airport regulation that delivers a better outcome for consumers and airlines. It should also enhance competition in the UK airports’ market and provide an effective framework for future airport growth.
BA chief executive Willie Walsh said: “The Competition Commission has an important role to play in determining the future of UK airports.
“Separate ownership of London Heathrow and London Stansted would make infrastructure developments at the airports more responsive to airlines’ and their customers’ needs and expansion at one airport would not be held back to suit the commercial needs of a monopoly owner.”
He added: “We want to see sharper incentives for better customer service and for BAA to be more responsive to the needs of its users”.
Report by Phil Davies
Phil Davies
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