CC: Potential for competition exists

Tuesday, 22, Apr 2008 12:00

The Competition Commission (CC) says there is room for improvement in competition among BAA's airports.

It says there is a "very real prospect of competition" between London's three main airports and says separate ownership would also help competition between Edinburgh and Glasgow.

But it adds it still has to decide whether the capacity shortage problem is best solved through competition or through maintaining BAA in its current form.

"The CC is inclined to the view that common ownership of the BAA airports is a feature of the market that adversely affects competition between airports and/or airlines," the interim report states.

"It is also inclined to the view that shortage of airport capacity, government policy and the regulatory system for airports might also be features that adversely affect competition or exacerbate other features which do so."

The CC will publish its final findings on the issue in August this year.