BAA Encouraged to Sell its Airports

Posted on 11. Dec, 2011 by in News

BAA is known as the expert when it comes to aviation. They have dominance over airports in Southeast England and Scotland. But recently, they received the news that they have to sell a portion of its industry. This move was ordered by the Competition Commission which published its initial report on the 20th of August 2008. BAA is owned by the Spanish company Ferrovial. BAA is according to the BBC News in its August 2008 issue, the company is accountable for more than 60% of air travels to and from UK.

The Competition Commission has suggested that BAA should sell three of the seven airports it owns. This includes the two London Airports, either Glasgow or Edinburgh Airport. This move was mitigated when BAA is unable to manage well the airports efficiently, performing poorly in the aspect of customer service, with high incidence rate of flight delays and cancellations.

The verdicts came as no surprise to the chairman of BAA, Sir Nigel Rudd. However he further shared jos sentiment that selling Gatwick or Stansted will only cause little changes as neither airport poses a real hazard to the business at Heathrow Airport.

The big change is taken as a good move by most airlines that are functioning in and around London. Virgin Atlantic and Ryanair have both verbalized their support and that Virgin is currently under discussion with the other airlines regarding the joint ownership of Gatwick Airport. Ryanair is also going through their financial status and checking it if it would be sufficient to purchase the Irish company’s biggest hub, Stansted Airport.

There are also some international companies that have expressed their interest in purchasing the BAA airports. These companies are the Manchester Airport Group and Global Infrastructure, Hochtief, a German construction company, and Australian bank Macquarie. Maquarie is a strong contender as it already manages the Bristol and Birmingham airports.

The Conclusion to this issue will only be finalized by the final report of the Competition Commission in April 2009.

 

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