BAA "dismayed" by Commission ruling
Originally published on www.businesstravellerme.com 19/07/2011 - Filed under: News »
BAA Chief Executive Colin Matthews said the company is "dismayed" that the Competition Commission's final decision requires BAA to sell Stansted and either Glasgow or Edinburgh airport.
He said the world has changed since the Competition Commission's March 2009 decision and that the new UK Government has changed aviation policy to rule out any new runway capacity in the South East and BAA has sold Gatwick Airport.
"The Competition Commission has not recognised that the world and BAA have changed," he said. "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."
"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'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.
He claims BAA's operational performance has improved with shorter security queues, more reliable baggage delivery "record levels" of flight punctuality and that passenger surveys show that customers recognise the improvements.
For more information, visit baa.com
Report by Dominic Ellis
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