Industry reaction to BAA airports sell-off ruling

Thursday, 19 Mar, 2009 0

*Bob Atkinson, travel expert at travelsupermarket.com: “With regards to next steps, we expect to see Glasgow sold and Edinburgh retained due to the Edinburgh airport’s growth potential and less reliance on holiday traffic. 

“For the new owners, it will be an opportunity to review how airports are run from their customers’ perspective, and improve all aspects of this experience, from ease of transit to security.    
 
“Research we carried out recently shows the enormous opportunity to improve the airport experience for the customer. 
 
“Over half of those we polled stated the experience would be less stressful if there were shorter queues.  A similar number requested fewer delays and just over a third would be calmer if it took less time to clear security. 
 
“These are all achievable and in light of this decision by the Competition Commission, now is the perfect time for both the BAA and potential bidders to propose changes in order to focus on offering a more efficient and competitive service. 
 
“We anticipate they will look to reduce and manage all airline charges, look at enticing customers in more creative ways, and work with airlines on giving their customers the service they really want.
 
“What pricing and service initiatives are required to attract new traffic and develop the existing airline services they have in a diverse market place of low cost, charter and scheduled carriers away from Heathrow and other airports?
 
“This will be the key in seeing whether carriers can be prized away from the BAA fortress of Heathrow to other airports in the South East.”
 
*Ryanair director of legal & regulatory affairs Jim Callaghan: “Monopolies don’t work. The BAA monopoly has done enormous damage to competition and the travelling public and Ryanair welcomes the CC’s recommendation to break-up the BAA airport monopoly. 
 
“Competition in the airline industry has delivered huge benefits for consumers and this will now be replicated at the three main London airports. 
 
“Ryanair looks forward to working with the new owner of Stansted and we call on the Competition Commission to ensure the early sale of both Gatwick and Stansted airports.”
 
*Easyjet chief executive Andy Harrison: “The Competition Commission has completed an excellent body of work of the sort that has been sorely lacking over the years in the industry.

“It has demonstrated regulatory gaming by BAA allied with profound weaknesses in how our airports are regulated.

“The break-up of BAA has been the inevitable outcome of these failures, but break-up alone will not resolve the problems of individual monopoly airports.

“The responsibility now rests with government, in its current review, to ensure that airports and regulation are not allowed to fail airlines and their passengers again”

*David O’Brien, chairman of the Stansted Airline Consultative Committee: “Passenger numbers at Stansted are in freefall, driven downwards by high airport charges and BAA monopoly indifference.

“The airlines can reverse this trend if new owners deliver what airlines and their passengers need – efficient facilities and lower costs.”

*Cheapflights’ CEO Chris Cuddy:  “Cheapflights welcomes any initiative that improves the consumer’s ‘end-to-end’ travel experience.

“Competition is good for consumers. Well funded owners of the three airports should bring fresh impetus to improving services and facilities for both consumers and airlines through new medium to long term investment.

“Essentially the welfare of both groups is inextricably bound together.

“However, putting airports services and customers first under the proposals for the CAA could conceivably backfire if airport charges go ‘sky-high’.

“The ability of airlines to operate at sustainable margins has a huge effect on the passenger experience; the airlines have to manage costs to meet operational expenses and higher charges as well as taxes.

“These do eventually impact on the paying passenger as airlines either pass on or try to find ways to meet or reduce costs – as the prospect of perhaps paying to go to the loo whilst airborne suggests!”



 

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Phil Davies



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