BAA response to Competition Commission decision
Posted: 19 July 2011 | BAA | No comments yet
“We are dismayed that the Competition Commission’s final decision still requires BAA to sell…”
BAA Chief Executive Colin Matthews said:
“We are dismayed that the Competition Commission’s final decision still requires BAA to sell Stansted and either Glasgow or Edinburgh airport. The Competition Commission has not recognised that the world and BAA have changed. This decision would damage our company which is investing strongly in UK jobs and growth. We have a responsibility to protect our shareholders’ investment and we will now consider a judicial review of the Competition Commission’s decision.”
The world has changed since the Competition Commission’s March 2009 decision:
A new Government has changed aviation policy to rule out any new runway capacity in the South East and BAA has sold Gatwick Airport. Both are significant changes to the airport market. Further, the airports in question face increased competition from non-BAA airports, particularly those in Europe, for the business of low cost carriers who now take a pan-European view of the market. It is also clearer now than it has ever been that Heathrow and Stansted serve different markets.
BAA has changed since the Competition Commission’s March 2009 decision:
BAA’s owners have invested £5 billion in UK airports since acquiring the company in 2006 (including over £300 million at Stansted), and are currently investing a further £1 billion a year. BAA’s operational performance has improved: security queues are shorter; baggage delivery is more reliable; and flight punctuality has hit record levels. Passenger surveys show that customers recognise the improvements.