MPs concerned over BAA takeover
MPs have today expressed serious concern at the news that Britain’s largest airport operator has accepted a takeover bid from a Spanish firm.
BAA owns Gatwick, Heathrow, Stansted and Glasgow airports and deals with 63 per cent of all passengers entering or leaving the UK, and 83 per cent of passengers in Scotland.
In a statement this morning, the operator said it had agreed to the offer from Spanish services firm Ferrovial, which already owns half of Bristol airport and all of Belfast city airport. It has valued BAA at £10 billion.
The move was widely expected, but the Conservatives have now called for an immediate investigation by the competition commission.
Such a move was first mooted by the Office of Fair Trading (OFT) last month, when the watchdog expressed concern that BAA had such a strong hold on the British aviation industry.
“My main concern is about whether it is appropriate for all three London airports to be in the hands of the same company with all of the implications that has for future levels of service and investment,” said shadow transport secretary Chris Grayling.
“I think there is now a compelling case for a very quick competition commission investigation and I hope the government will give its full support to such an investigation.”
Liberal Democrat transport spokesman Alistair Carmichael had more general concerns about the future of a company that controls such a large chunk of the aviation industry.
“It is essential that the government keep a close watching brief on these developments, particularly with speculation that BAA’s airports could be split, with the least profitable being sold,” he said.
“Britain’s airports are a strategic national asset and therefore cannot simply be treated like any other private company.”
The news of the takeover comes the day after chancellor Gordon Brown warned European leaders against a relapse into protectionism in a speech to the Confederation of British Industry (CBI).
Speaking before last night’s conference, he cited attempts by the French and Luxembourg governments to block takeovers of domestic firms and warned such “economic patriot policies” would do nothing for economic growth across the European Union.
“We need Europe to wake up to the costs of agricultural protectionism and also what we have seen in the last few months – restrictive practices by some of the major economies in Europe where they are blocking takeovers and trying to operate what are called economic patriot policies,” he said.
“In a sense they are restricting the growth of the single market and preventing us as British companies and us as British employees getting work from the rest of the single market in Europe.”
