Regulator's report on BAA's ownership of airports welcomed

RYANAIR AND a number of UK airlines yesterday welcomed a finding from the Competition Commission (CC) that BAA's ownership of…

RYANAIR AND a number of UK airlines yesterday welcomed a finding from the Competition Commission (CC) that BAA's ownership of seven large airports in Britain might not be in the best interests of passengers or airlines.

In an interim report, the commission considered BAA's ownership of Heathrow, Gatwick and Stansted airports in London and its facilities in Edinburgh, Glasgow, Aberdeen and Southampton. It said it was "inclined to the view" that common ownership of BAA airports is a feature of that market that "adversely affects" competition between airports and/or airlines.

"We are particularly concerned by its apparent lack of responsiveness to the differing needs of its airline customers, and hence passengers, and the consequences for the levels, quality, scope, location and timing of investment and levels and quality of service," said Christopher Clarke, chairman of the BAA Airports inquiry.

No conclusions were reached by the CC, which expects to publish its provisional findings in August. If competition problems are identified, it intends to set out possible remedies, which might require BAA to sell one or more airports.

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The Stansted Airline Consultative Committee (ACC), which includes Ryanair, welcomed the CC's initial finding.

In a statement, ACC chairman David O'Brien, who is Ryanair's head of operations, said the BAA had "ignored" the interests of Stansted airport users, "doubled charges in the past year", and plans to build "an over-specified Taj Mahal, which will unnecessarily consume 800 acres of Essex countryside and double charges once more".

Aer Lingus, which is a large user of Heathrow but does not base aircraft in Britain, declined to comment on the report.

BAA said it would carefully consider the commission's document.

"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," BAA chief executive Colin Matthews said.

"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."

The Dublin Airport Authority yesterday said passenger traffic increased by 8 per cent in the first three months of this year to more than five million.

Passenger throughput at the airport exceeded 1.9 million in March, a 9 per cent rise over the same month last year. Growth during the month was boosted by two bank holiday weekends.

Passenger volumes on continental European routes rose by 8 per cent to more than 930,000 while UK traffic grew by more than 6 per cent to 780,000.

Ciarán Hancock

Ciarán Hancock

Ciarán Hancock is Business Editor of The Irish Times