|
|
|
|
|
|
|
|
|
UK airports could be up for sale as regulators move in on BAA
13/12/2006
UK airport operator BAA could be forced to put some of its airports up for sale after a report from the Office of Fair Trading urged an enquiry into its stranglehold on the UK market.
BAA, which was bought by Spanish construction giant Ferrovial in June this year, owns Heathrow, Gatwick and Stansted airports in London, Glasgow, Edinburgh and Aberdeen airports in Scotland, and Southampton airport on England's south coast.
Its dominant position is particularly marked in London, where BAA airports are responsible for 92 percent of the capital's air travel. This has led insiders to tip Gatwick airport as a likely candidate for disposal, predicting a sale price of up to £3bn.
A similar situation in Scotland, where market share is around 88 percent, means that Edinburgh and Glasgow airports, worth a reported £1bn each, are also favourites to be put on the market.
The OFT's findings have been welcomed by many of the UK's airport carriers, including British Airways, Ryanair and Easy Jet, who believe that the lack of competition leads to higher charges. Meanwhile, BAA hit back, saying that greater influence for the airlines should not necessarily be confused with being in the interest of passengers.
Ferrovial has until February 8th to come up with a proposal before the OFT refers the matter to the Competition Commission.
Subscribe now to get advanced acquisition search capabilities.
| Business for Sale Search
|
|
|
|
|
|
|
|
|
© 1995-2009 Business Sale Report. A division of Business Data International Ltd. All rights reserved
|