OFT launches probe into UK airports

Monday, 30 Jun, 2006 0

The Office of Fair Trade has decided to carry out a probe into the UK airports market.

The study is designed to establish whether the market structure works well for consumers.

In May, the OFT said it was considering a probe and today announced that it has decided to proceed.

Its decision follows the purchase of main UK airports operator BAA by Spanish group Ferrovial for £10.3bn.

If the OFT finds competition is not working properly in the sector, Ferrovial might face a possible break-up of the group.

OFT chief executive John Fingleton said: “Greater competition between airlines over the past decade has led to wider choice for air travellers and lower fares.

“We now think it is time to explore the potential for greater competition within the airport industry as this could ultimately yield significant benefits in terms of timely and adequate investment in UK airports, a better value service to the UK travelling public as well as potentially relieving the industry – and ultimately its customers – of the costs of regulation that may be disproportionate.”

According to the OFT, nearly two-thirds of air passengers in the UK begin or end their journey at a BAA airport

In London this rises to 9 out of 10 passengers and in Scotland to 8 out of 10.

The OFT has not yet decided whether to defer the the airports market to the Competition Commission for a more in-depth investigation.

By Bev Fearis



 

profileimage

Bev

Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.



Most Read

Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know

Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham

Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago

Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research

Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact

Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference

Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role

Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal

Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination

Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness

Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future

Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
TRAINING & COMPETITION
Skip to toolbar
Clearing CSS/JS assets' cache... Please wait until this notice disappears...
Updating... Please wait...