CAA in favour of BAA break up - Heathrow Airport News

Airport news for Heathrow on 02/10/2008.

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Britain’s Civil Aviation Authority is on record that it “strongly supports” the recommendations of the Competition Commission regarding the sell-off of three of BAA’s seven airports – two in the London area and one in Scotland.

“This can be expected significantly to increase competition between airports in the South East and Scotland, to the benefit of passengers, airlines and the wider UK economy,” the aviation authority stressed.

The group has also welcomed the announcement by BAA that it will auction off Gatwick Airport, saying that this is a first step in the process of improving competition and service.

Support for regulatory reform throughout the UK airline industry by the monopoly watchdog was also welcomed by the CAA.

“The CAA recognises that much of the time airlines’ and passengers’ interests will be aligned. But this will not always be the case. The CAA believes that it is important, therefore, to have a clear focus for regulation of airports, and that should be on passengers.”

Dr Harry Bush, who directs the economic regulations group noted: “The CAA supports the CC’s provisional finding that BAA should sell two South East airports and one in Scotland. Indeed, the case for break-up in the South East is stronger than currently argued by the CC.”

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