BAA ordered to continue sell-off
Wednesday, 14 Oct, 2010
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Airports operator BAA was today ordered to sell Stansted and either Edinburgh or Glasgow by the UK Court of Appeal.
Back in 2009 the Competition Commission completed an investigation which concluded that in the interests of fair competition BAA should sell both London airports plus make a decision on selling either Edinburgh or Glasgow.
It allowed BAA two years to carry this out.
BAA sold Gatwick but then appealed the decision at the Competition Appeal Tribunal which went on to support its claims, agreeing that there could have been bias in the Competition Commission’s decision because one member of the group that did the original investigation, a professor Maizer, had a vested interest in BAA having to sell.
BAA also said that the detrimental economic climate, lessening the worth of its airports, made conditions for selling unfair.
However, today the Court of Appeal said the possibility that Maizer tainted the outcome was too remote.
It added that Maizer, who was linked at the time to the Manchester Airports Group, a potential buyer of BAA’s assets, was "too remote from Manchester Airports Group for apparent bias to be a real concern."
A spokesman for BAA said: "We are disappointed that the Court of Appeal has upheld two of the five grounds argued by the Competition Commission. We note the Court’s view that apparent bias in relation to a panel member existed during part of the Commission’s investigation and will study this judgement carefully. We will be seeking permission to appeal to the Supreme Court."
A Ryanair spokersman said the carrier welcomed the ruling which "will promote competition and a better deal for airport users and passengers".
by Dinah Hatch
Dinah
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