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Ending BAA's monopoly is not welcomed by all



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Published Date: 21 August 2008
Why has there been an investigation into BAA's airport ownership?
The Competition Commission inquiry was launched after the Office of Fair Trading found that the firm's seven UK airports may "prevent or restrict" competition.

What share of air passengers does BAA have?

Its seven airports account for 60 per
cent of passengers across the UK, but this rises to 88 per cent in lowland Scotland and 90 per cent in the south-east of England.

What are the perceived benefits of greater airport competition?

Rival operators may cut landing charges to attract more airlines and routes and improve terminal facilities to lure more passengers.

So why is opinion split in Scotland over whether BAA should be forced to sell Edinburgh or Glasgow?

Several business groups argue the airports serve different areas rather than compete with each other.

Why is there concern about introducing controls at Aberdeen airport to offset its local monopoly?

There are fears that this could put other airports, such as Inverness, at a competitive advantage if they are free of such restrictions.

What happens next?

The Competition Commission is seeking responses to its "provisional findings" by 17 September. There will be a final decision by March.

Do the plans have to be approved by the government?

No. The commission is independent of government.

Who might be interested in buying any airports put up for sale?

The owners of other major UK airports, European airport operators, state-controlled sovereign wealth funds in the Gulf and pension funds.



Why does BAA no longer call itself the British Airports Authority?

Because that was the name of the state-run organisation which was privatised by the Conservatives 21 years ago.





The full article contains 287 words and appears in The Scotsman newspaper.
Page 1 of 1

  • Last Updated: 20 August 2008 10:14 PM
  • Source: The Scotsman
  • Location: Edinburgh
 
1

Sierra Foothills Scot,

Diamond Springs 21/08/2008 01:58:47
"Why is there concern about introducing controls at Aberdeen airport to offset its local monopoly?

"There are fears that this could put other airports, such as Inverness, at a competitive advantage if they are free of such restrictions."

Inverness is now at a competitive DISadvantage. I remember the summer several years ago when there were flights from Amsterdam to Inverness. Since I have an aversion to flying through Heathrow or Gatwick (and I am not alone), I think a level playing field would be a great help to Inverness to have its Amsterdam flights restored.
2

Joseph Gibson,

Ayrshire 21/08/2008 04:24:05
Well... When I saw this I thought "ridiculous" as it states "Because that was the name of the state-run organisation which was privatised by the Conservatives 21 years ago." The Conservative politicians back then probably made quite a few pennies on that one :) seriously people don't fall for this sh*t. I bet alot of politicians will have shares in these various privatised companies and BAA and they are pushing to have these airports sold, if you listened to the commissioner I believe he said "We're debating whether to allow BAA to keep heathrow" It's all to do with money, and personally I doubt it'll solve any problems that we have as our population keeps growing, with more and more people coming to the UK and "leaving"! just money baby, having that green in your hand and those many digits on your bank balance for those politicians :)
3

Ubi,

Edinburgh 21/08/2008 06:34:42
Why has there (now) been an investigation into BAA's airport ownership? An excellent question when the monopoly has existed for over 30 years.

Surely it could not be because BAA is now owned by Ferrovial, a Spanish company? Xenophobia is alive and well in Whitehall.
4

Joseph Gibson,

Ayrshire 21/08/2008 07:02:12
Money, money... They love money!!! That's right, its money... Those bits of paper that has the Queen's head on it, or some inventors and usually a picture of the exchange. Don't think otherwise, because the fact remains; Money
5

eric,

Lothian 21/08/2008 07:56:05
I see today that Manchester Airport owners have shown a strong interest in Glasgow Airport.Because of its Long hall gateway to Scotland staus.
Glasgow overtook Edinburgh in july .and has a train link being built.Manchester has its own jobcentre at airport it employs that many folks.Remember a lot of Folk from Edinburgh & Glasgow,still use Manchester
6

JT,

21/08/2008 12:39:37
If selling off the airports improves the competition between the outlets airside all the better. Once you go through security you are held to ransom on prices, especially as you still cant take bottles of water through. I recently got charged 1.45 for a small bottle of water at Birmingham. Time to get rid of the pretentious sandwich bars.
7

Joe,

Livingston 21/08/2008 13:30:26
#5..One month does not make Glasgow the year round busiest.. Are you forgetting the other 11 months of the year when Edinburgh outperforms Glasgow? For the record (Source BAA) the current annual figures are Edinburgh = 9.1M passengers and increasing, Glasgow = 8.5M. passengers and decreasing.
8

Kitti Kat,

Newtown Square 21/08/2008 18:50:25
Having been through Glasgow and Edinburgh airports, give me Edinburgh any time. There's times when privatization or having lots of other competitors is not good. Our train service is lousy because of privatization and our telephone system is sonfusing due to the many companies that are competing. Perhaps it is best that BAA owns and runs the airports. If #6 thinks things will get better, he or she is mistaken. At our airports here, we are ripped off on everything from bottled water to a burger. I recently paid six dollars for a small bottle of water and a pretzle in the Philadelphia (Filthydelphia to some of us) airport.In days of yore, it cost about 2.50 for the same thing.

 

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