BAA's future

An interim report from the Competition Commission has once again called into question the future of British airports operator BAA.

Today's report from the market regulator adds to growing criticism of BAA's standing in the UK airports sector, which it dominates through ownership of seven airports.

These include the three major London airports, Heathrow, Gatwick and Stansted, which critics say need upgrading work to improve the UK's aviation infrastructure.

A disappointing start to Terminal 5 at Heathrow and long queues following increased security rules are among the criticisms levelled at BAA.

There are also concerns BAA, which is owned by Spanish firm Ferrovial, is not moving fast enough to increase Britain's aviation capacity. Some argue this is damaging to the economy.

Unions are opposed to a shake-up of BAA, however, fearing a sudden downturn in conditions for employees as cost pressures follow the introduction of competition between airport operators.

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