The Competition Commission has released its interim report into BAA’s ownership of seven UK airports.

The Competition Commission (CC) has released its interim report into BAA’s supply of airport services – and has suggested that the airport company’s ownership of seven UK airports may not be serving well the interests of airlines and passengers.

The CC’s Emerging Thinking report’s main findings have revealed that it currently views the common ownership of BAA airports as adversely affecting competition between airports and airlines, and that the shortage of airport capacity and government policies may also be unfavourably affecting competition.

Christopher Clarke, Chairman of the BAA Airports inquiry, explained: “BAA dominates the airports market in the south east of England and in lowland Scotland…Currently there is no competition between BAA’s three London airports (Heathrow, Gatwick, and Stansted) and only very limited competition from non-BAA airports (including London City and Luton).”

The report stated that common ownership of Edinburgh and Glasgow airports, and of Heathrow, Gatwick and Southampton airports, affects the competition between them, but that the CC is further investigating whether this also applies to Aberdeen airport.

Colin Matthews, BAA’s Chief Executive, commented on the report: “The challenge for us all in addressing the lack of capacity in the south east is how we ensure the timely delivery of investment.  BAA remains committed to making the investments needed to transform our airports and improve passenger service standards in London, Scotland and Southampton.

“We recognise many of the concerns that have been expressed by airlines, and reflected by the CC, and we will be doing everything we can to address these.  However, BAA remains of the view that its ownership is in passengers’ interests, both in terms of tackling the shorter term service problems, and in following through with major commitments to investment in new facilities and capacity.”

Full details of the CC’s interim report can be found on its website ^[1]. The Commission will be publishing its provisional findings in August.