Regulator insists on BAA Stansted sale

Airports operator BAA will be required to sell Stansted and either Glasgow or Edinburgh Airport, the Competition Commission has provisionally confirmed.

The Commission has been reviewing its ruling that BAA needed to sell the airports since a legal challenge from BAA over the decision last year. This is despite the fact it won the Appeal court challenge and a subsequent decision by the Supreme court on whether to allow BAA a further appeal.

The review was also to take account of the fact that the government ruled out any expansion of Stansted subsequent to the Commission’s original ruling.

The Commission said in a statement today it had provisionally concluded that: “The sale of the airports is fully justified and that passengers and airlines would still benefit from greater competition with the airports under separate ownership. The CC has also concluded that there is no reason to change the original timescale [of the sales].”

Peter Freeman, Competition Commission chairman, said: “We have re-examined that decision in the light of a significant subsequent development when the Government decided to rule out further runways at London’s airports. We are clear that many benefits will still arise with­out that expansion, by increasing competition and addressing detrimental effects from BAA’s common ownership.

“If anything, since the report there now appears to be greater capacity available that will increase the potential for competition between the London airports.”