Greater Airport Competition For Uk Airports Must Be Good For The Customer?

British Airport Authority has lost its right of appeal to keep Stansted or either Glasgow or Edinburgh

. This will come as another hammer blow having been forced to sell Gatwick airport to Global Infrastructure Partners last year for 1.5 billion.

BAA only successfully appealed previously on the grounds that the Commission included a panel member who was connected to Manchester Airport. The courts have now decided that the Competitions Commissions findings were not bias because of this of this connection, although BAA may seek a further appeal to the Supreme Court.

BAA has long dominated UK airports especially in the South East owning at one time Gatwick, Stansted and Heathrow which incidentally are the three biggest airports in the UK and in Scotland where it currently owns Aberdeen, Edinburgh and Glasgow with only Prestwick offering any competition whatsoever.

It is difficult for BAA to defend such dominance and this ruling will be welcomed by airlines and the general public alike. At present there would appear to be little incentive to attract business say in Scotland because they are just taking business from one pocket and putting it into another.

Gatwicks new owners have recently announced a 1 billion refurbishment schedule to revamp the North Terminal in particular, improve public transport integration and to update all retail facilities.

This is being done with the express intent to win any new business but moreover to take business from Heathrow. The question is would BAA have been motivated to do the same if they still owned Gatwick.

Gatwicks avowed intent is to attract customers through its doors to increase plane occupancy which will in turn encourage more airlines to base themselves at the airport. Clearly, Heathrow are not going to sit idly by and for the first time in many years there will be true competition in the capital.

The disposal of Stansted in the South East and the sale of Glasgow or Edinburgh will also create greater competition in these areas.

by: David Cook

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