BAA ordered to sell
July 20th, 2011 by elisa

BAA has been ordered by the Competition Commission to sell Stanstead and either Glasgow or Edinburgh airports even though it has already sold Gatwick.

BAA had challenged the order in March 2009 as it claimed that Stansted serves a different market to Heathrow. However, in its final ruling the Commission said that it stood by its earlier decision that the company must sell the airports.

BAA called the decision ‘draconian’ and is considering a judicial review even though it has already been refused permission to appeal further by the Supreme Court.

“Our report has been challenged, reviewed and upheld and it is clear that the original decision to require BAA to divest three airports remains the right one for customers,” said Peter Freeman of the Competition Commission.

The Commission said its decision was “fully justified” and passengers and airlines “would still benefit from greater competition with the airports under separate ownership, despite the current government’s decision to rule out new runways at any of the London airports”.

The sale of Stansted will start in three months’ time,  followed by either Glasgow or Edinburgh.

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