Synopsis: |
This report contains the detailed provisional findings of the Competition Commission (CC) investigation into the market for the supply of airport services by BAA in the United Kingdom.The CC provisionally finds that there are competition issues at each of BAA's seven UK airports (Heathrow, Gatwick, Stansted and Southampton in England, and Edinburgh, Glasgow and Aberdeen in Scotland) with adverse consequences for passengers and airlines.A principal cause is their common ownership by BAA. (There are also competition problems arising from the planning system, aspects of Government policy and the system of regulation). The proposed remedies, if implemented, would see BAA sell two of its three London airports, and also either Edinburgh or Glasgow airport.The CC is now seeking views on which two of BAA's three London airports should be sold and similarly which of Edinburgh or Glasgow airports should be sold. The CC is also seeking views on improvements to the effectiveness of the current system of regulation.The CC will reach its decisions on remedies on the basis of responses to its consultation at the same time as it makes its final decisions on the competition issues and publishes its final report in the first quarter of 2009. |