BAA break-up

Heathrow Airport

Wednesday, 20, Aug 2008 12:00

Airports operator BAA faces having to sell three of its seven airports in Britain.

Provisional findings of a Competition Commission inquiry published today reveal "significant competition problems" which require addressing.

The news has not been welcomed by BAA, which disputes the analysis contained in the report and argues its remedies would be "counter-productive".

A review of the transport white paper is also recommended by the report, which has worried business organisations concerned that airport expansion improve Britain's capacity.

Other concerns – about the impact on jobs and even whether the concept of competition actually applies to airports, given passengers' limited choice – have also been raised.

The CC has admitted BAA is unlikely to be forced to sell Heathrow.