Airports run by BAA in the UK could be subjected to more competition, according to a new report.
The Competition Commission's (CC's) initial publication on the topic has suggested that the interests of passengers and airlines may not be being fully addressed by BAA owning seven British airports.
In particular, the report suggests that there is potential for competition between
Edinburgh and
Glasgow airports, as well as between the three
London hubs, making BAA's common ownership of these five airports questionable.
However, capacity problems in London need to be addressed before competition concerns can be resolved, the CC said.
"We are particularly concerned by its apparent lack of responsiveness to the differing needs of its airline customers, and hence passengers, and the consequences for the levels, quality, scope, location and timing of investment and levels and quality of service," commented Christopher Clarke, chairman of the BAA airports inquiry.
In response to the report, BAA said that it believes its London airports do not compete with each other and that its Scottish hubs have their own distinct catchment areas. However, it stated that it would "carefully" consider the CC's findings.
Posted by Paul at 11:21, 22 April 2008