BAA may be forced to sell three of its seven UK airports.

According to a decision to by the Competition Commission, BAA will be required to sell Gatwick, Stansted and Edinburgh airports.

The move, subject to a final consultation, aims to eliminate recent problems concerning competition standards in airport regulation as well as improving levels of service at UK airports.

Back in August 2008, the Commission stated that BAA could potentially face selling some of its seven UK airports because of the lack of competition.

Christopher Clarke, Chairman of the BAA Airports inquiry, said: “Under the common ownership of BAA, there is no competition. Under separate ownership, the airport operators, including BAA, will have a much greater incentive to be far more responsive to their customers, both airlines and passengers.”

The Commission will also propose measures to ensure a high standard of service and investment at Heathrow.

With reference to the Competition Commission’s decision, Colin Matthews, BAA Chief Executive, said: “We do not believe that it has set out compelling evidence to support its view that selling Stansted as well as Gatwick will increase competition and we remain concerned that its proposed remedies may actually delay the introduction of new runaway capacity.”

BAA had already put Gatwick up for sale in August following the Competition Commission’s initial response.

The airport, valued at £1.8bn, has attracted interest from several buyers including Virgin Atlantic and German firm Fraport.

The Competition Commission said it would consider responses to its provisional decision and it would publish its final report in the first half of 2009.